Powertel has with immediate effect been demerged from the Zesa holdings company, which also effectively has been collapsed into one company, as government moves in to realign non perfoming State Owned Enterprises (SEO).
Speaking few minutes ago during a cabinet presser address, Minister of information Monica Mutsvangwa pronounced shake up on Zesa and GMB where Zesa subsidiaries were collapsed into one company and ordered to make other groups in the subsidiary to be treated as departments.
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“The Zimbabwe Electricity Supply Authority Is to merger all the group’s companies into a single vertically integrated company, with subsidiary companies becoming divisions of the new enterprize,” she said
“To amend the Electricity Act Chapter 13.19 in order to cater for the proposed changes in the structure of Zesa, As a consequence of this reform that Powertel be hiked off ZESA and be merged with Zarnet and Africom,”.
Powertel an internet Access Provider which was wholly owned by the power utility, ZESA has been instructed to merge with Africom and Zarnet, which basically were other state owned ISPs, which were not performing as well.
Government has TelOne as the only State Owned Internet Access Provider IAP which is is underperforming as well but has not been affected by this move while more changes are expected as government lets go of loss making entities.
The move seem to be signalling the privatisation of non performing SEOs, as government begins to bundle up these loss making entities.
The move however may greatly affect powertel which had better revenue collections, as it joins Zarnet an ISP which probably has the least clientele in Zimbabwe and Africom, a pioneers of CMDA technology which is slowly getting defunct.
Africom however had somehow managed to mantainits traditional clients on its local fibre network for small to medium offices.