DELAYS by the government to finalise the proposed privatisation of telecommunications company, NetOne, has stalled plans to court a strategic partner, three years after the proposal was first made.
REPORT BY VICTORIA MTOMBA BUSINESS REPORTER
State Enterprise Restructuring Agency executive director Edgar Nyoni yesterday said NetOne was still scouting for a strategic partner, but Cabinet was yet to give a nod.
“The issue is going to be discussed by the inter-ministerial committee on commercialisation and privatisation of parastatals before it goes for consideration by Cabinet. The strategy for the shareholding that would be disposed off is not yet there,” Nyoni said.
He said the committee would come up with proposals on the envisaged shareholding structure.
NetOne’s managing director Reward Kangai said it was clear that a partner should be secured for the company.
“It’s still under consideration; I can’t disclose the partners. It’s all subject to the process. It’s a question of processes being pursued and that there is full transparency and maximum benefit to shareholders,” Kangai said.
Last year, Transport and Communications minister Nicholas Goche told local media that a possible strategic partnership with South Africa-based MTN was under discussion, among with other partners.
NetOne intends to construct its $10 million head office along Arcturus Road near Support Police Unit residential camp.
The company said the head office would house telecommunication equipment, associated masts, sports facility and for staff other approved club members, and a water supply system comprising on site boreholes.
Kangai said the project was yet to receive a budget approval from the government.
“We have not started building at our head office, it’s still subject to the approval of our budget by government,” he said.