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Chivayo fails to get Starlink deal

by Staff reporter
10 Sep 2024 at 08:26hrs | Views
Local businessman Wicknell Chivayo, seeking to capitalize on the lucrative Starlink opportunity, leveraged his proximity to President Emmerson Mnangagwa to secure an exclusive deal. This move has sparked concerns about the propriety and transparency of the arrangement.

Chivayo, known for his controversial business dealings, persuaded Mnangagwa to announce on Africa Day, May 25, that Starlink would enter the Zimbabwean market. The announcement came a week after Chivayo's visit to Mnangagwa's Precabe Farm in Sherwood, Kwekwe, following difficulties with the President's security at his Harare residences.

Without engaging the Minister of ICT, the regulatory authority POTRAZ, or the formal tender process, Mnangagwa declared: "I'm pleased to announce that I have approved the licensing of Starlink by POTRAZ to provide advanced internet and related digital processing services in Zimbabwe through its sole and exclusive local partner, IMC Communications (Pvt) Ltd." Starlink, a Low Earth Orbit (LEO) satellite operator owned by Elon Musk's SpaceX, is set to deploy high-speed, low-cost internet infrastructure across Zimbabwe, particularly in rural areas.

Following the announcement, Chivayo quickly began promoting IMC Communications as the exclusive Starlink partner in Zimbabwe, despite no formal agreement with SpaceX. Two weeks later, IMC appointed former ZOL CEO Denny Marandure as managing director to oversee the rollout of Starlink services.

IMC claimed exclusivity based on Mnangagwa's statement rather than a formal business contract with SpaceX. Sources indicate that Chivayo aimed for an arrangement akin to that of Malaysian satellite operator Measat, seeking to be Starlink's sole reseller or distributor in Zimbabwe. This strategy was intended to provide political protection and leverage crony capitalism networks, according to insiders.

However, Starlink's interest in IMC was reportedly limited to political support, not a formal business arrangement. As Chivayo's efforts faltered, Zimbabweans are finding alternative means to subscribe to Starlink, which is now available in the country. The standard Starlink kit is priced at US$350 with a monthly fee of US$50 for unlimited internet, while a mini kit costs US$200 with a monthly charge of US$30.


Source - online