JUST a year after warning that unpaid government bills were choking its operations, State-owned telecommunications operator TelOne says outstanding government debt has more than doubled to nearly US$42 million, constraining its ability to invest in network expansion and modernisation.
The arrears, which rose from US$19,2 million a year earlier, highlight the government’s growing reliance on delayed payments to State-owned enterprises, effectively forcing them to finance public operations while weakening their own liquidity and investment capacity.
According to TelOne’s 2025 annual report, the swelling receivables have limited the company’s ability to fund capital projects, maintain network infrastructure and expand using internally generated resources. Speaking at the company’s annual general meeting last Friday, chief executive officer Lawrence Nkala described the debt as a major operational constraint.
“We are better than the budget in terms of total operating cost by 2%… As the shareholder spoke to this, in these environments, we are affected in our operations by failure by the government to pay what is due,” he said.
“Currently, we do have close to US$42 million that we’re owed, ZiG1,2 billion, and it continues to increase. So, we want to be capacitated in that area.”
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Nkala said TelOne required fresh capital injections rather than relying solely on borrowings.
“We would need not only debt financing, but we also want equity funding. There should be a deliberate attempt to invest rather than relying only on debt financing,” he said.
The disclosures reinforce broader concerns over the government’s increasing dependence on payment arrears to ease pressure on Treasury’s cash flows.
While this provides short-term fiscal relief, it transfers liquidity pressures to public enterprises, weakening their balance sheets and reducing their capacity to invest in strategic national infrastructure.
The debt burden comes despite growing demand for TelOne’s services.
Revenue increased 10% to ZiG2,6 billion during the year, driven mainly by a 60% increase in data usage as demand for broadband services continued to grow.
TelOne continues to grow as the preferred cheaper option for data services among internet service providers.
“Revenue for the period under review increased by 10% to ZiG2,6 billion, reflecting steady underlying growth compared to the prior year, anchored by continued network infrastructure investment,” TelOne said.
“Data usage during the period remained the primary growth driver, registering an increase of 60% compared to the same period last year.”
TelOne also reported strong growth from its strategic partnership with Starlink, generating US$3,7 million in revenue during 2025, up from US$215 000 in 2024.
“The business fully realised value out of its strategic partnership with Starlink a low-earth-orbit satellite service, recording revenue to the tune of US$3,7 million in 2025, up from US$215 000 in 2024,” TelOne said.
The company’s data centre business also continued to grow, providing another source of revenue diversification beyond traditional telecommunications services.
Representing Information Communication Technology, Postal and Courier Services minister Tatenda Mavetera, the ministry’s chief director Prince Sibanda acknowledged the debt challenge and said the government was working to address it.
“We recognise that debt remains a major constraint on the company’s ability to mobilise affordable capital and accelerate modernisation,” Sibanda said.
“Government appreciates the efforts being made to pursue sustainable solutions to this inherited burden.”
He urged the company’s board and management to continue strengthening corporate governance, financial management, accountability and operational efficiency.-newsday
