Foreign creditors unconvinced with lending to Zim networks

A Zimbabwe telecommunications executive has revealed that Zimbabwe's mobile networks are still battling to get credit for network expansion from offshore financiers despite a degree of stability and the dollarisation of the economy.

By Dumisani Ndlela

16 Feb 2010

Douglas Mboweni, chief executive officer of Econet Wireless Zimbabwe, said offshore bankers still perceived Zimbabwe's risk as high, and were shunning direct credit support to domestic telecommunications players, forcing them to rely on parent companies outside the country.

“We have convinced creditors that there is no risk of waking up one day with no network,” Mboweni told a parliamentary committee.

He said the question of the multi-currency, which could be ditched for a Zimbabwe currency, was not one they could answer with certainty.

Zimbabwe allowed the use of the US dollar and the South African rand in February last year, abandoning its own currency which had been ravaged by runaway inflation.

Econet has ramped up subscriber numbers from about 600 000 to 3 million with the help of South Africa-based shareholder, Econet Wireless International, while Telecel Zimbabwe has received support from Orascom Telecom. State-owned NetOne is courting MTN for capitalisation.

Dumisani Ndlela

About Dumisani Ndlela

Dumisani Ndlela is a Zimbabwean journalist specialising in business and financial reporting, with experience reporting on commodities, stock and financial markets, advertising, marketing and the media. He has previously reported from a number of regional countries as well as from the UK and Germany on commodities and regional integration. He can be contacted on ku.oc.oohay@aleldnd.