Telecel Zimbabwe has appointed Mr Kundai Tibugare of Grant Thornton as the company’s corporate rescue practitioner, signalling a major move to restructure and stabilise the mobile network operator (MNO).
He will be assisted by Mr Bulisa Mbano, another practitioner from the global professional services firm.
The two will be tasked with overseeing the temporary management of the financially distressed company’s affairs, under the Insolvency Act.
The corporate rescue mechanism provides a legal framework for a financially distressed company to undergo a supervised process designed to restore its financial health and operational viability.
According to the Insolvency Act, Section 122, a company’s board can resolve to begin this process and place the company under supervision if they have reasonable grounds to believe the company is financially distressed and there is a reasonable prospect of rescuing the company.
“I can confirm that I have been given the task alongside Kundai,” Mr Mbano told this publication.
The pair face an uphill battle given the legacy challenges plaguing the organisation, most notably the shareholding wrangles concerning the 40 percent stake held by the Empowerment Corporation.
The difficulties stem from various groups disputing and claiming ownership of the shares in question, a development that has long created significant operational challenges for the business.
The unresolved dispute over the shares involves several key figures, most notably businessmen Dr James Makamba and Mr Phillip Chiyangwa, Leo Mugabe, businesswoman Dr Jane Mutasa, and some groups comprising veterans of the liberation struggle and farmers.
Telecel resolved to place the company under voluntary corporate rescue proceedings following a prior unsuccessful attempt by its workers to place the firm under corporate rescue in 2022.
The board resolution, filed with the Master of the High Court and Registrar of Companies, initiates a formal process under section 122 of the Insolvency Act aimed at resuscitating the company.
Telecel’s subscriber base decreased by five percent to 336 559 during the second quarter of 2025, according to the Postal and Telecommunications Sector Performance Report for the second quarter of 2025 by Potraz.
The performance contrasts sharply with its main competitors, Econet and NetOne, which both recorded subscriber growth.
As a result, Telecel’s market share declined by 0,13 percentage points over the same period.
In October 2022, the Communications and Allied Workers union (CAWUZ) applied to the High Court for Telecel to be placed under corporate rescue proceedings, aiming to prevent the telecommunications firm’s collapse.
CAWUZ, which represents Telecel employees and held the status of a creditor due to significant outstanding arrears in both salaries and union subscriptions, stated that the company was clearly in financial distress.
The union contended that Telecel had consistently failed to service its debts and that its liabilities exceeded its assets, providing a straightforward indication of insolvency. The application asserted that Telecel had been on the verge of failure for an extended period.
Despite the severe financial condition, CAWUZ maintained that Telecel’s problems were “not insurmountable.”
The union highlighted the success achieved by rival competitors and the abundant, “inexhaustible” potential for business growth within the sector as evidence that the company still possesses “realistic prospects of recovery.”
To leverage this potential, CAWUZ proposed the appointment of a corporate rescue practitioner to supervise the company and devise a comprehensive turnaround plan, arguing this measure was essential to avoid complete liquidation.
Telecel, however, opposed the union’s application. The company challenged CAWUZ’s legal right to bring the case before the court, specifically disputing the union’s locus standi (legal standing).
Telecel argued that the union did not qualify as an “affected person” under the relevant legislation, attempting to have the application dismissed on technical grounds before the merits of the financial situation could be fully examined.-herald
