(Ecofin Agency) - The government of Zimbabwe says, as part of its ambition to boost the telecoms sector, it is planning to sell the majority stake it holds in TelOne and NetOne. This was reported last week by the finance minister, Mthuli Ncube (photo), during a press conference.

According to him, the two still State-owned companies will be privatized through a single offer; that way, transactions will be eased and time shortened. The government is currently working on this strategy with its financial advisor, who will receive all bids.

Mthuli Ncube said he cannot yet provide all details but when the time comes, the government will make sure to provide them all. When the operation is completed, the State will retain only 26% of shares. “There is a reason we are choosing to remain with 26% because this is what we call effective minority shareholding which we can use to block certain decisions. If it is below that, we are not effective,” explained Mthuli Ncube.

In addition to TelOne and NetOne, the government also plans to privatize Telecel, in which it has a 40% stake. But first, it will invest $20 million to acquire full ownership before divesting 74% of the capital and retaining 26%.