Zim inks US$1bn deal to revamp Telecel, NetOne
THE Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, yesterday signed a US$1 billion agreement with San Francisco-based Clear Mobitel Limited to revamp mobile operator Telecel and inject more life into NetOne, among other projects.
The deal is a culmination of talks initiated by Clear Mobitel chief executive Mr Harpal Mann when he met Clear Mobitel chief executive Mr Harpal Mann in the United Kingdom at King Charles III’s coronation ceremony in May 2023.
The signing ceremony between Prof Ncube and Mr Mann was held yesterday on the sidelines of the United Nations General Assembly meetings here, signalling the consolidation of the process.
An initial investment of $200 million will be made, followed by $350 million and then the balance in due course.
The African Development Bank and Afreximbank have been roped in to assist with financing.
“CML to acquire and operate the licence (Spectrum) and assets of Telecel Zimbabwe and Africom and form a joint venture with Mutapa Investment Fund to invest in the two companies that will provide the backbone of the fintech ecosystem”, reads the MOU.
Furthermore, CML will set up data centres for both commercial and public use, again through a joint venture with Mutapa Investment Fund.
The company also intends to invest in an Agri-Fintech Platform for farmers to access better financing, markets and technology.
Also, CML will assist in setting up, training and human resource requirements for a technology park and an innovation hub, as part of the deal.
Speaking after the signing ceremony, Prof Ncube said Zimbabwe was upbeat.
“This shows that Zimbabwe is open for business. Data is the new gold and Zimbabwe needs to build its data capacity”, he said.
Mr Mann said his company was ready to enter the Zimbabwean market.
“We made our due diligence and we are confident of investing in Zimbabwe”, he said, adding that SADC, under President Mnangagwa’s chairmanship, presented good business opportunities.-chroncile
