Telecel Zimbabwe adopts five year strategic plan to address recapitalisation issues
January 20, 2020
By Wallace Mawire
Telecel Zimbabwe (Pvt) has revealed that it has formulated and adopted a five year strategic plan to address recapitalisation issues affecting the company.
The company has revealed that it would like to assure all its stakeholders and customers, that while the it is facing some challenges, the company is not on the brink of collapse and continues to offer quality service to its customers.
It is reported that like all other local organisations, Telecel Zimbabwe’s operations have been affected by a host of factors, both macro and micro economic, but attributed mainly to limited funding for the company over a long period of time, in the face of challenging economic conditions in Zimbabwe.
It is reported that specifically, rapid depreciation of the local currency and the levels of tariffs increases approved, which continue to lag behind inflation, have affected the ability to meet the foreign currency denominated obligations, especially spares for equipment and Service Level Agreements and support.
It is added that this limited vendor support has resulted in some network disruptions during the festive season, which have since been rectified.
The company says that in order to mitigate the challenges, the company has been on a very aggressive import substitution and local skills transfer initiative.
It is areported that the company’s main switching centres are in the industrial area and have been subjected to prolonged power outages which have resulted in the company’s technology operating costs ballooning due to the use of alternative power, particularly diesel, and has in turn affected base station availability in other parts of the country.
“The Company is in advanced discussions with the power authorities and government officials in the ministry of Energy to ensure a dedicated power line to the switching centres and in addition the company is investing in alternative power solutions such as Tesla solar batteries for its base stations,” the company said in a statement.
It is added that the company and other industry stakeholders continue to engage all the relevant authorities to ensure that the tariffs are adjusted in line with the cost movement of other basic operational costs.
It is added that the Telecel board and shareholders are aware of the ongoing challenges.
It is added that the finalisation of all outstanding financial statements is on course and it will open avenues for new funding from financial institutions.
It is reported that the business continues to focus on ensuring that it offers the most affordable service to its customers in light of the depressed consumer disposable incomes.
