(Ecofin Agency) - A threat is looming over Zimbabwe's incumbent telecom operator TelOne’s voice and data services. Indeed, according to Chalton Hwende (photo), president of the parliamentary committee in charge of the IT sector, this threat is the result of an $18 million debt owed by the public company to many strategic partners such as Eximbank of China, West Indian Ocean Cable Company (Wiocc), TDM Mozambique and the American bank TCF.  

The official reveals that TelOne owes Eximbank of China $500,000 which represents interests on the $98 million credit facility the bank granted to it for phase 1 of the construction of the national optical fiber network. This debt is a hindrance to the realization of phase 2 of this project aimed at extending and improving the company’s network.

TelOne actually faces financial difficulties due to many government and parapublic institutions’ debts.  According to Chalton Hwende, these government debts represent 53% ($73 million) of the total funds owed to the telecom company. Parapublic companies owe $25 million.

"Any disruptions of internet service by TelOne will have a catastrophic impact … on the country’s communications systems, national security and TelOne’s reputation, and the effect on the economy at large cannot be overemphasized", Chalton Hwende said.