Categories: Stories

Zimbabwe blocking MTN and Safaricom to protect local companies

ICT minister Supa Mandiwanzira says government is blocking the entry of bigger, better resourced international mobile networks to protect existing local companies and encourage their growth, but is disappointed with their attitude to sharing infrastructure, a move seen as cutting costs and improving service.

Mandiwanzira says government has blocked companies like the Kenyan Safaricom and South Africa’s MTN ‘who have been knocking.’

“If government did not want Ecocash to be the largest or Econet to be the largest we could have opened our gates for Safaricom to operate a M-pesa in this market. We could have allowed MTN to set up in this market and offer the services that Econet offers,” said Mandiwanzira at the conference in Harare.

“I can assure you that they come with the huge pocket to dwarf any player in this market. They have been knocking on our doors but we have kept them closed because we want to protect them (local mobile operators).”

Mandiwanzira was responding to Ecocash general manager, Natalia Jabangwe who told the conference that sharing of infrastructure would not be viable for Econet which has invested over $50 million in Ecocash infrastructure.

“It takes a lot to be able to grow a mobile money payments business…There will come a time when it will be inevitable for the distribution network to be shared but I think we must appreciate that a lot has gone into building the distribution network. In fact; over $50 million has gone into building the distribution network,” added Jabangwe.

The Econet Wireless’ mobile money transfer service, Ecocash, controls 98 percent of the local market with six million customers. Last year, it moved $6.6 billion in transactions.

“It is wrong to assume that you have the first move advantage and therefore you must close out other Zimbabweans from benefiting from a system on which government is spending resources defending you, making sure competition does not come to grab your market,” said Mandiwanzira.

Zimbabwe has two other mobile networks, NetOne and Telecel, both of which are controlled by government.- The Source

(103 VIEWS)

This post was last modified on %s = human-readable time difference 10:13 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024