Struggling Telecel seeks lifeline through voluntary corporate rescue

HARARE – Telecel Zimbabwe, the country’s smallest mobile network operator, has placed itself under voluntary corporate rescue, a last-ditch move that gives the struggling company temporary protection from its creditors while it attempts to revive operations.

The decision, effective October 27, 2025, was lodged with the Master of the High Court and the Registrar of Companies under Section 122 of the Insolvency Act, the company’s board said in a statement.

Telecel will be shielded from lawsuits or asset seizures for the duration of the process, giving it vital breathing room to attempt a turnaround.

Telecel said the process was aimed at “rehabilitating the business and did not signify any intention to liquidate” in what observers see as a bold attempt to buy time and hold off creditors a little longer.

The corporate rescue framework allows a financially distressed company to operate under the supervision of a court-appointed practitioner while plans are made to restructure its debt, restore viability, and attract new investment.

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

That ownership saga, combined with the company’s deteriorating network infrastructure and loss of customers, has left it with a fraction of the market it once commanded.

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

The company operates just 17 LTE base stations, against Econet’s 1,700, and has no 5G coverage.