Africa’s largest fixed-phone operator is said to be targeting a 60% share of the Zimbabwean operator, TelOne, according to government officials.
A spokesperson for TelOne confirmed it was in talks with a foreign operator, but declined to give details.
‘We are currently engaged in discussions with some party that we cannot disclose at the moment because of the non-disclosure agreement that we have signed with them. Our negotiations are at a very advanced stage such that we would not wish to jeopardise them by divulging details in the press,” TelOne spokesperson Collin Wilbesi told the Mail & Guardian on Thursday.
But government sources said Telkom has already conducted due diligence on TelOne. The Zimbabwe government is reluctant to give Telkom a controlling stake, but wants the operator to come in as a technical partner. Zimbabwe’s controversial indigenisation laws also mean Telkom cannot get more than 49% of TelOne. However, the country’s empowerment minister has previously said this rule could be set aside in special cases.
Telkom also has operations in Nigeria, Kenya and Namibia.
TelOne enjoys a monopoly, but has made losses for years due to government interference.
TelOne’s managing director Hampton Mhlanga has said his company is $200 000 in debt, and at one point had to block calls from its customers to mobile operators to manage a growing interconnect debt.
A group of 60 South African businessmen are in Zimbabwe for the signing on Friday of an investment protection agreement and also to hold talks with the government on investment opportunities.