Business / Companies
Orascom Telecom set to comply with Zimbabwe indigenisation laws
30 Mar 2011 at 12:31hrs | Views
Orascom Telecom Holdings SAE is in talks with Zimbabwe's government on cutting the stake in its unit in the country to 49 percent from 60 percent, the Egyptian company said.
The reduction in the holding of Telecel is in line with Zimbabwe's indigenization law that requires locals to own a majority stake in foreign companies, it said in a statement published in the Harare-based Herald newspaper today.
Zimbabwe's Indigenization and Economic Empowerment Act, passed into law three year ago, seeks to transfer at least 51 percent control of all foreign-owned firms, including mines and banks, to black citizens. The government issued a decree on March 25 giving mining companies 45 days to submit plans on how they will meet the rule.
Telecel Zimbabwe, the southern African nation's second- largest mobile-phone operator with 1.8 million subscribers, is currently 40 percent owned by a group of local investors. Econet Wireless Zimbabwe Ltd. (ECWH) has more than 5 million subscribers, while the state-owned NetOne is the third-biggest operator.
The reduction in the holding of Telecel is in line with Zimbabwe's indigenization law that requires locals to own a majority stake in foreign companies, it said in a statement published in the Harare-based Herald newspaper today.
Zimbabwe's Indigenization and Economic Empowerment Act, passed into law three year ago, seeks to transfer at least 51 percent control of all foreign-owned firms, including mines and banks, to black citizens. The government issued a decree on March 25 giving mining companies 45 days to submit plans on how they will meet the rule.
Telecel Zimbabwe, the southern African nation's second- largest mobile-phone operator with 1.8 million subscribers, is currently 40 percent owned by a group of local investors. Econet Wireless Zimbabwe Ltd. (ECWH) has more than 5 million subscribers, while the state-owned NetOne is the third-biggest operator.
Source - Byo24News
