Telecel, Zimbabwe is seeking recapitalisation to the tune of up to US$500 million, a move which is set to bring about substantial changes in the share ownership structure and the company’s overall stability and status.
The Mobile telecommunication company has lately been struggling despite its massive potential for future growth and this capital infusion has been described by many as a desperately needed progressive strategy.
Speaking to a very reliable source, TechnoMag is informed that the recapitalisation process will be kickstarted in a few weeks from now as investors seek to jumpstart the rather dormant telecoms giant, once considered a formidable competitor to Econet Wireless.
“We are in the process of recapitalizing the company for network expansion and modernization including an eventual migration to a Next Generation Network. We are driving towards total capital investment close to $500M over the next 5 years for expanding network coverage, enhancing 3G capacity and migration to 4G/LTE ”
said the source.
Telecel Zimbabwe is moving in a new direction which will see implementation of a 5 year action plan that lays the foundation for its turnaround and put it on a trajectory for sustainable growth and profitability.
This Strategic Plan is expedient based on the last mover advantage that will enable the optimization of implementation costs and guarantee refined unique solutions that will spur the company beyond parity with competition.
The source also said that they are targeting a growth leap, as their plan seeks to deliver improved top line and bottom line performance, accelerate acquisitions with growth mainly attributed to and under pinned by exponential growth in data and digital services.
In an enviroment that has a rapidly expanding population including fast-growing youthful and urbanizing
segments the telecoms market in Zimbabwe has enjoyed penetration growth and profitability far above global averages.
There will be an imperative to drive Mobile Financial Services growth to expand its portfolio countrywide and globally as Telecash has not been doing well, even in the season when millions today rely on mobile money and the sector is boasting of significant growth statistics in regards to its financial inclusion.
“The company is also looking at tapping into the fast growing SMR sector that contributes almost 60% to the country’s GDP, of critical importance will be to enhance and strengthen management capacity and structures including specialized skill capabilities to drive operational execution while supporting its risk management processes.”
Strategically the company is focused on diversifying and strengthening its product portfolio with emphasis on data, enterprise solutions, eMerging MFS solutions, digital services, M2M and other emerging services, increasing operating margins, achieving profitable growth, optimism efficiencies in capital investments,
The capital investment will go towards new sites roll out with associated civil works, enhancing the network backbone and backhauling infrastructure to establish a robust traffic transportation system, retooling the business to improve productivity and enhance operational execution and delivery, acquisition, automation and upgrade of business support services, device acquisition, retail footprint expansion and administrative purposes.
Competition in the sector has led to more affordable products and services and rapid infrastructure development courtesy of the regulatory body POTRAZ which has also had positive effects of reducing barriers to accessibility, particularly in areas outside urban centres.