• Telecom operator launches investor search under restructuring process
• Company faces heavy debt, falling revenues, and weak market position
• State-owned firm seeks fresh capital to support turnaround

Zimbabwean telecom operator Telecel has launched a search for investors as it seeks to revive its operations after years of financial and operational difficulties. The company issued a call for expressions of interest on April 21, with a deadline of April 28 for potential investors to submit proposals.

The notice, signed by restructuring administrators Kundai F. Tibugare and Bulisa Mbano, clarifies that the process does not constitute a public offer or solicitation to acquire shares in Telecel Zimbabwe.

The move follows the company’s entry into judicial restructuring in November 2025. The process is intended to provide temporary relief from creditors while allowing management to restructure liabilities, streamline operations, and attract new capital.

A company weakened by structural challenges

Telecel’s difficulties have been building for years, driven in part by persistent shareholder disputes. According to local media, these tensions stem from the company’s structure as a consortium of investors, including Telecel International, which later withdrew. The disputes created prolonged governance uncertainty and eventually led to the Zimbabwean state taking a majority stake.

Concerns about the company’s viability had already surfaced earlier. In October 2022, the Communication and Allied Service Workers Union of Zimbabwe (CASWUZ) filed a case with the High Court, citing financial and technical fragility. Court documents indicated that Telecel’s assets were valued at $1.5 billion at the end of 2021, against liabilities of $24 billion, leaving the company with negative equity of $22.5 billion.

The operator is also facing declining revenues, limited capacity to invest in network infrastructure, and difficulties paying staff salaries.

A marginal position in the market

Telecel’s market position has significantly weakened. Data from the telecom regulator show that the company had just 319,548 mobile subscribers as of June 2025, representing a 1.99% market share. During the second quarter of 2025, it handled only 0.02% of total voice traffic, while its share of the internet market stood at 0.16%.

Its infrastructure footprint remains limited compared to competitors. Telecel operates 671 2G towers, accounting for 13.45% of the national total, and 435 3G towers out of 3,878 nationwide. In contrast, it has only 17 4G towers, far behind Econet with 1,698 and NetOne with 1,578.

Against this backdrop, the investor search represents a key step in Telecel’s attempt to stabilize its finances and reposition itself in a highly competitive telecom market.

Isaac K. Kassouwi