Telecel Zimbabwe creditors to vote on corporate rescue plan

Telecel Zimbabwe (Private) Limited has taken a significant step in its corporate rescue process after convening a meeting of its members and creditors to consider and vote on a proposed corporate rescue plan aimed at restructuring the struggling mobile network operator.

The meeting, convened in terms of the Insolvency Act [Chapter 6:07], is scheduled for Friday, 24 July 2026, according to a notice issued by the company's Corporate Rescue Practitioners.

The proposed rescue plan sets out terms of settlement in accordance with Section 142(2)(b) of the Insolvency Act and applies to three classes of stakeholders: ordinary members, preferent creditors and concurrent creditors.

Members and creditors attending the meeting will have the opportunity to speak and vote on the proposed plan. Those unable to attend in person may appoint one or more proxies to exercise their voting rights on their behalf.

Corporate Rescue Practitioners Kundai Tibugare and Bulisa Mbano are expected to publish the outcome of the vote within two weeks after the conclusion of the meeting.

The outcome is expected to determine the next phase in Telecel's restructuring efforts as the company seeks to address mounting debts and restore business viability.

Telecel entered corporate rescue after years of financial difficulties that have eroded its position in Zimbabwe's highly competitive telecommunications sector. The company is currently under the supervision of Grant Thornton Zimbabwe, which was appointed as the Corporate Rescue Practitioner to oversee the restructuring process.

The operator is reported to owe creditors more than US$240 million, making the rescue process one of the most significant corporate restructurings in Zimbabwe's telecommunications industry.

Once regarded as a formidable player in the mobile communications market, Telecel has experienced a dramatic decline over the past decade. At its peak, the operator served more than two million subscribers, but persistent financial constraints, underinvestment in network infrastructure and increasing competition have steadily reduced its market share.

Latest industry figures show that Telecel now accounts for less than 2% of Zimbabwe's mobile telecommunications market, with approximately 303,000 active subscribers recorded by the end of 2025. The company trails far behind market leader Econet Wireless Zimbabwe and state-owned NetOne.

The corporate rescue plan is intended to provide a structured framework for settling creditor claims while giving the operator an opportunity to stabilise its operations and preserve value for stakeholders.

Should the plan secure the required support from creditors and members, it could pave the way for the implementation of debt restructuring measures and a possible turnaround strategy for Zimbabwe's third-largest mobile network operator.