TELECEL Zimbabwe’s parent company Orascom Telecom Holding is continuing discussions with the Ministry of Indigenisation and Youth and Empowerment on over compliance with the country’s empowerment legislation, the firm confirmed Thursday.
Addressing the Parliamentary Committee on Media Information and Information Communication Technology development, Telecel Zimbabwe boss Francis Mawindi said he expected a deal to be agreed soon.
"With regards to indigenisation the relevant ministry was in talks with our parent company and are working on how best they can comply with the regulations," he said.
"The issues (of listing on the Zimbabwe Stock Exchange, ZSE) as well as the company’s shareholding structure are being discussed and once a decision is reached an official announcement will be made.”
Orascom Telecom Holding has a majority 60 per cent interest in the country’s second largest mobile phone company with the balance controlled by the Empowerment Corporation - a consortium of individuals and other local groups.
But under the country’s economic empowerment programme foreign investors are now required by law to transfer majority control of their Zimbabwe operations to locals.
Meanwhile Mawindi said Telecel Zimbabwe now has 2 million active subscribers adding the company was is now working to expand coverage to about 85 per cent of the country.
He however expressed concern over the impact of the country's power supply problems on the company’s operations.
“Power outages continue to be an issue and using generators comes at a cost to the business,” he said.