07-22-20 by Spotlight Zimbabwe

TelOne seeks investors for USD 300 mln capitalisation

Zimbabwean operator TelOne says it is looking for investors to inject around USD 300 million into the recapitalisation of the business, The Herald reported. It has just concluded a network enhancement called the National Broadband Project, which was funded by a USD 98 million China Exim Bank loan facility. MD Chipo Mtasa said the projected recapitalisation would further capacitate TelOne’s operations and service offerings.

The National Broadband Project has modernised the country’s telecommunication system from its core, and other funds have gone into the deployment of new optical fibre systems and a new network system. The project saw the implementation of the Harare-Beitbridge and Bulawayo-Beitbridge Backbone Fibre, which have cut internet bandwidth landing costs by about 30 percent.

Mtasa said the recent launch of the Network Operations Centre was the culmination of the National Broadband Project.  TelOne is one of 43 state-owned and parastatal companies that the government has targeted for full or partial privatisation. In 2019, the Treasury indicated that it sought to raise USD 300 million from the partial privatisation of both TelOne and NetOne.

Telecompaper

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