Econet Places Pay-TV Business Under Administration
Econet, which operates under the brand name “Kwese” will begin talks with creditors to save the business, according to the CEO, Joseph Hundah.
Hundah said that the company had appointed the accounting firm Ernst & Young to manage the process.
He told Business Day that Kwese’s free-to-air business was too small to sustain all the financial burdens that come with its satellite operations, which led to the decision to start talking with creditors.
Zimbabwe’s richest man, Strive Masiyiwa is the owner of Econet Media.
Joseph Hundah noted that the group’s current inability to exit money out of Zimbabwe had had a significant impact on the business.
Zimbabwe recently stopped recognising the SA rand, US dollar and other foreign currencies as legal tender as it tries to curb the black-market trading that has contributed to high inflation.
Hundah said that Kwese TV would continue to provide its free-to-air services in the rest of Africa as usual.
In March 2019, the Independent Communications Authority of SA (Icasa) announced its decision to hand out the media consortium — 20% held by Econet Media, 45% held by Royal Bafokeng and 35% held by Mosong Capital — a licence to compete with broadcasters like the SABC and e.tv after wrapping up an almost two-year process.
The service, called Kwese Free TV, which has not yet been launched, is the first major player to enter the SA market since e.tv was rolled out more than 20 years ago.
Credit: This article originated from www.businesslive.co.za