Telecom

Zimbabwe Hopes To Raise US$350-Million From Telco Shares

According to Zimbabwe’s Finance Minister Mthuli Ncube, Zimbabwe is hopeful that it will raise approximately US$350-million from selling shares in state-owned telcos as part of the country’s economic reforms.

Ncube said that the reforms are aimed at strengthening the economy and cutting down on expenditure.

The fixed phone operator TelOne and mobile operators Telecel and NetOne, as well as the People's Own Savings Bank (POSB) and ZIMPOST,  will be among the first state-owned entities to be made private and commercialised.

Ncube explained that in 2018 Zimbabwe’s government had approved the implementation framework for 43 of its SOEs and would now be targeting five of those public enterprises for immediate reforms.

He added that the government projected to realise more than US$350 million from this initial process.

Zimbabwe’s state-owned telcos have struggled to generate revenues and to remain profitable against the country’s worsening foreign currency shortages.
Due to the continuing financial struggles in the industry, the Auditor General's office in Zimbabwe has flagged many of the parastatals as there is doubt over their ability to continue operations.

The government has also imposed an electronic transaction tax of 2% as part of austerity measures saying that it would help to raise funds for the cash-strapped state.

Ncube said that the government expects to raise more than US$600-million by the end of the current year.


Credit: This article originated from www.itwebafrica.com



 





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