Telecel Zimbabwe Seeks Lifeline with Voluntary Corporate Rescue

HARARE – In a final effort to revive its operations, Telecel Zimbabwe, the nation’s smallest mobile network operator, has entered voluntary corporate rescue. This decisive step grants the struggling company temporary legal protection from its creditors.

The company’s board confirmed the move, effective October 27, 2025, in a statement. The filing was made with the Master of the High Court and the Registrar of Companies under the Insolvency Act.

This process shields Telecel from lawsuits and asset seizures, providing crucial breathing room to attempt a financial turnaround. The board emphasized that the action aims at “rehabilitating the business” and is not a step toward liquidation, a move observers see as a bold strategy to secure more time.

The corporate rescue framework allows a financially distressed company to continue operating under a court-appointed practitioner. The goal is to restructure debt, restore viability, and attract new investment.

A Steep Decline

Once Zimbabwe’s second-largest mobile operator, Telecel has been crippled in recent years by chronic under-investment and shareholder disputes. This culminated in the government acquiring a 60 percent stake through state-owned Zarnet.

This ownership saga, combined with deteriorating network infrastructure and customer losses, has left the company with a fraction of its former market share.

Telecel now reports just 319,548 active subscribers, representing less than two percent of the mobile market. It handles a mere 0.02 percent of all voice calls, compared to Econet’s 87.61 percent and NetOne’s 12.3 percent, and carries only 0.16 percent of internet traffic.

The company’s infrastructure is also vastly outmatched, operating just 17 LTE base stations against Econet’s 1,700, and has no 5G coverage.

Source: Original reporting by The Zimbabwe Mail.