Zim steps up privatisation push

ZIMBABWE hopes to have clear plans by the end of the year on turning around 10 struggling state firms under a revived privatisation drive, which a cabinet minister said was attracting foreign investors.

A unity government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai last year following a disputed 2008 election is battling to fix an economy hit by hyperinflation, which reached 500 billion percent two years ago.

In an interview with Reuters, State Enterprises Minister Gorden Moyo said Zimbabwe was determined to change the fortunes of government firms, many of them notorious for shoddy services, perennial financial losses, gross mismanagement and corruption.

Moyo said the government had recently approved a new programme to restructure, commercialise and privatise at least 10 companies and had received interest from foreign investors.

"We have a number of investors - locally, regionally, internationally, from the west, from the east, north and south - who are all making inquiries and are all making statements of interest in our public entities," he said on Monday.

"The public entities in Zimbabwe have the potential to contribute over 40 percent to our GDP, and they can contribute to market capitalisation as well as employment."

Zimbabwe's unemployment rate is above 80 percent.

Targeted firms include the Grain Marketing Board (GMB), National Railways of Zimbabwe, fixed phone company TelOne and mobile phone operator NetOne, AgriBank, Zimbabwe Iron and Steel Company (Zisco), the National Oil Company of Zimbabwe, power utility ZESA, Air Zimbabwe and beef producer Cold Storage Company (CSC).

Moyo said details would be available by year-end, but added that government had identified a strategic partner for beef producer CSC. The grain board GMB would be split into a commercial and social unit, handling grain management and strategic food reserves.

The government was "at an advanced stage" of choosing a foreign investor for Zisco, he said.

"We have said to ourselves, this side of Christmas, we would want to make a determination to what happens to each one of them. We want to determine whether we privatise or we commercialise or we restructure in general," Moyo said.

Moyo declined to say which companies would be privatised.

The government solely controls or is the major shareholder in 78 corporations known locally as parastatals, in sectors such as energy, transport, finance, mining and telecommunications.

 

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"Over the years, our parastatals have been a drain on the fiscus (budget) and this ministry is upbeat and really, really ready for the challenge so that we are sure that we stop the drain, rehabilitate some of them, and offload some of them," said Moyo. - Reuters

NewZimbabwe.com

Econet launches Zim's first broadband service

Econet Wireless has launched Zimbabwe's first nationwide broadband service after unveiling a $100million network covering the country's major cities.

The network uses the latest 3G and WiMax technology, and is linked together by a fibre optic transmission system, with satellite back-up to ensure reliability.

Whilst the technological side of broadband is quite impressive, it is the way in which Econet has packaged its services for the consumer that sets it apart. Econet customers are being offered the services in three very easy to understand packages.

Econet Wireless, CEO, Mr Douglas Mboweni, said Econet Broadband was the most ambitious project undertaken by the company since its launch in 1998, adding that broadband would play a pivotal role in the reconstruction of Zimbabwe's economy.

"We have essentially connected Zimbabwe to the global digital economy," Mr Mboweni said.

To cater for the different preferences of customers, Econet is offering solutions for mobile, home and office internet use.

The "On The Go" package will be offered for customers on the move using data-capable mobile phones. In preparation for the launch, Econet has already stocked its shops with a wide range of smartphones, which have the capability to send and receive emails and make video calls.  

With "On The Go", Econet customers can also access the internet on their laptops from anywhere in the country.

Econet Broadband's home solution, "@HOME", offers internet access at home, allowing users to use the web for business, school or leisure.

For the business user, Econet offers a high powered package known as "@WORK".

NewZimbabwe.com

Masawara snaps up BP, Shell assets

LONDON listed investment fund Masawara PLC has announced a deal to take over BP and Shell's Zimbabwe assets subject to regulatory approvals.

A statement issued by Shingi Mutasa, one of the fund's investors, on Tuesday said a deal had been agreed in principle.

The assets include 73 retail sites, storage capacity of approximately 59.5 million litres of product across ten strategic centres in the country and a total staff complement of 87 employees.

"The Company is pursuing high quality new investment opportunities in Zimbabwe to add to a portfolio of existing investments," the statement added.

When the $100m fund launched in August it outlined plans to buy up cheap assets in Zimbabwe ahead of an anticipated upswing in the local economy as political stability returns.

"We have a great opportunity to lead the pack in bringing much needed investment capital to Zimbabwe and help the country rebuild following its recent economic difficulties," Shingi Mutasa one of Masawara's main investors said at the time.

Masawara was listed on London's Alternative Investment Market (AIM) in August raising US$25 million in new funds.

Its portfolio of assets comprises an effective 40 percent interest in Joina City, the single largest commercial and retail building in Harare.

The company also retains a 30 percent interest in TA Holdings, a diversified investment company with stakes in insurance, agro-chemical and hospitality businesses across sub-Saharan Africa and is listed on the Zimbabwe Stock Exchange.

Econet launches Diaspora life assurance service

ECOLIFE, the mobile life insurance service launched last week by Econet Wireless Zimbabwe, will be extended to Zimbabweans living outside the country before the end of the year, the company has announced.

This comes as Econet reported strong subscriber uptake of the new product after its launch in Harare last week.

Zimbabweans living in South Africa who regularly call home would be able to register for life cover, making it possible for their families to get up to $10 000 in Zimbabwe if they die in South Africa.

"We know that many Zimbabweans living in South Africa are the main bread winners and, when they pass away, families often struggle to even get their bodies home. We want to help them if they are our customers in South Africa.

"All they would need to do is to use Econet Wireless South Africa. If they call home, we would analyse how much they spend on calls to Zimbabwe, as that is part of our income here," Econet spokesman Ranga Mberi said.

The push by Econet Wireless into the diaspora began last year and the company's South African sister company has already sold more than 500 000 SIM cards in that country.

Meanwhile, Econet Wireless Zimbabwe Chief Executive Officer Mr Douglas Mboweni has described the response to Ecolife as one of the most spectacular the company has ever experienced.

"We registered more than 30 000 users in the first two days, which means we should have most people registered by Christmas.

"This is quite spectacular, as it means Zimbabweans will have the same level of insurance cover as some of the most advanced economies, even ahead of South Africa," said Mr Mboweni.

Mr Mboweni said the partnership with First Mutual Life to offer insurance service was one of many such partnerships planned for the future.

He issued a general invitation to other companies to approach Econet to partner for other services.

"Econet has a network that reaches millions of consumers and we want to use that network as a platform to offer other services.

"You can partner with us to provide banking services or make bill payments. We are open to listen to new ideas that are innovative and make life easier and more cost effective for our customers," he said.

NewZimbabwe.com