Forum raps Potraz over Telecel licence cancellation

The recent attempt by government through the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) to cancel Telecel's operating licence discourages foreign direct investment and renders the country uncompetitive for business, a black business empowerment forum has said.

Washington Mehlomakulu, a member of the Black Business Forum a grouping of young entrepreneurs who seek to promote networking and co-operation among the young businesspeople said the decision to cancel Telecel's licence had long-term investment effects.

They don't have much foreign direct investment coming into the country, but they have a situation where a company is being closed. What kind of message are they sending concerning protection of investment?" Mehlomakulu asked.

Telecel Zimbabwe had its licence cancelled last month by Potraz due to reported non-compliance with the required shareholding structure which demanded that local indigenous people must be majority owners of the company.

They are yet to see a company that has been closed because it has not complied with the indigenisation law.