HARARE — Telecel Zimbabwe (Private) Limited has been placed under corporate rescue following a resolution by its board of directors to initiate voluntary proceedings in accordance with Section 122 of the Insolvency Act [Chapter 6:07].
Telecel has for the past decade been affected by a number of issues, but the major one has been limited funding. The company now has a weak balance sheet, through sustained value destruction, that has shown through a sagging subscriber base.
Effective from October 27, 2025, the resolution aims to rehabilitate the company and does not indicate an intention to liquidate. A general moratorium on all legal actions against the company or relating to its assets is now in place, pursuant to Section 126 of the Act.
The company stated, “The corporate rescue process is designed to rehabilitate the company and does not signify an intention to liquidate.”
Stakeholders—including employees, customers, suppliers, creditors, and shareholders—have been notified of this development. Telecel Zimbabwe assured that further updates regarding the rescue process will be provided as required by law and to keep all parties informed.
Telecel is predominately a 2G network (especially in the rural and peri-urban areas) data connectivity is poor resulting in huge churn and reduced ARPU. Competition—Econet and NetOne—massively rolled out 3G and 4G for fast data thereby offering the customers a better experience. If Telecel receives funding, which is the most pressing issue, it will roll out at next-generation technologies such as 4G and 5G networks and ensure that coverage is available in under-serviced areas.
Ownership of Telecel Zimbabwe is primarily held by the Mutapa Investment Fund through ZARnet, which owns 60%, with the remaining 40% held by various organizations including James Makamba.
