HARARE - State-owned wireless network operator NetOne says it urgently needs a strategic partner to inject fresh capital.
Its chief executive, Reward Kangai, told Parliament’s Information Communication Technology portfolio committee yesterday that the institution needs the capital to keep afloat in the face of increasing competition.
He said limited funding resulted in NetOne — the smallest of Zimbabwe’s three mobile networks — failing to meet the Zimbabwe Revenue Authority (Zimra) and Postal and Telecommunications Regulatory Authority (Potraz) obligations.
“There is need to consider the option of possible strategic partnerships with the right people with no hidden agendas to improve our infrastructure as the mobile network business requires constant recapitalisation,” Kangai said.
He said while government is hard pressed, there is need for it to appreciate as shareholder that the business is capital intensive, with a single base station costing around $500 000 to set up.
Kangai added that the company’s efficiency was being affected by government’s bureaucratic procurement process.
NetOne’s procurement is done through the State Procurement Board (SPB).
“It (going through SPB) is a big millstone on our legs and I don’t understand why we have to go through that process because we earn our money through doing business so we must just be delisted from the board and be allowed to operate as a business entity as there is no basis or justification for that,” said Kangai.