Zimbabwe Sets September Deadline For Privatisation Of TelOne And NetOne
Ncube announced that NetOne and TelOne had accumulated a joint financial loss of more than US$100-million.
He said that the government wants to fast-track the partial privatisation process that would result in the state owning only 40% equity in the two telcos, which are jointly offered as a package deal to the potential investors led by Telkom and MTN.
Ncube confirmed that MTN had been in negotiations with the Zimbabwean government over the telcos since September 2018.
The government aims to raise a total of US$350-million from the sale of its shares in NetOne, TelOne and three other state-owned companies - Telecel, People's Own Savings Bank and the state post office ZimPost.
Ncube said the cabinet had approved the joint package privatisation plan. He added that Zimbabwe’s government would secure a better deal financially if NetOne and TelOne are sold together as a package.
Ncube noted that the money made from the sale of the shares would help significantly reduce the budget deficit from 12% to 5% of GDP.
The Privatisation of TelOne and NetOne is part of the country's Transitional Stabilisation Programme or economic blueprint that supports President Mnangagwa's Vision 2030 of transforming Zimbabwe into an upper middle-income economy.
Ncube said that the government had identified 43 state-owned entities to reform.
Audit results showed that in 2016, 38 state-owned companies incurred a total loss of US$270-million. The audit also found that out of the country's 93 state-owned entities, 70% were technically illiquid or insolvent.
Credit: This article originated from www.itwebafrica.com