At the time Strive Masiyiwa was battling to get a license to operate a mobile network in Zimbabwe in the late 90’s, he launched such a network in Botswana. Mascom became his first network operator and the only one that would bear his name: Masiyiwa Communications.
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Masiyiwa sold 14% of Mascom in 2004 amidst discontent from minority shareholders of Econet Wireless. He then sold another 44% of the business to telecoms powerhouse, MTN the following year and exited the building.
Why did MTN sell?
MTN was seeking to gain control of Mascom and establish an MTN Botswana. This was never to happen though because of some complicated management contract that gave operational control to Portuguese Telecoms.
This frustration of not getting to slap their branding and to effectively control the MON has led to MTN’s decision to sell and pull out of the business. MTN has said:
Pursuant to this it announced that it would be disposing of its associate in Botswana, Mascom, for $300 million where its lack of control position and MTN branding meant that the group is not able to execute on its BRIGHT strategy
MTN is also selling a number of it’s business units across the continent and beyond. They sold their Cyprus operation for USD 294 million last year. They are also selling one of Africa’s most celebrated e-commerce giants Jumia Technologies of Nigeria. MTN’s CEO, Rob Shutter says:
We are simplifying the group, we are reducing risk, and improving returns. That will generate some returns that will be helpful for our gearing and other priorities.
This makes sense considering that of the 22 African countries MTN operates in and others beyond the continent, 84% of their earnings come from just South Africa, Ghana, Nigeria, Iran and Uganda.
Why is Econet buying?
The buyer of the 53% stake is Econet International Limited which was already a minority shareholder. This is a good move by Econet. There is sense in diversifying markets beyond Zimbabwe and leveraging presence across borders to possibly offer value added services.
At 1.7 million subscribers, Macom has more than 50% of the market share in Botswana. Masiyiwa’s Liquid Telecom also entered the market about a year ago through a partnership with the Botswana Power Company. Mascom could become one of the biggest customers for Liquid Telecom Botswana.
UPDATE: When we published the story we wrote that the buyer was Econet Wireless Zimbabwe. Econet has clarified that the buyer is in fact Econet International Limited.
Econet Wireless ZimbabweStrive MasiyiwaLiquid Telecom
Econet Wireless Zimbabwe, a subsidiary of Econet Wireless International, is the first and largest mobile network services provider in Zimbabwe. The telecoms giant became popular with its products and services such as Buddie. It has established branches in different corners of the country and enjoys… Read More About Econet Wireless Zimbabwe
Strive Masiyiwa (born 1961) is a Zimbabwean born entrepreneur, and philanthropist. He is the founder and chairman of Econet Wireless International a global telecommunications group. In 2002, Masiyiwa made it to the Time Magazine List of Most Influential People, and in March 2014, he was… Read More About Strive Masiyiwa
Liquid Telecom is one of the fastest growing internet service providers in Zimbabwe in particular and Africa in general. It provides state of the art fibre internet which links Zimbabwe and the Southern African region to the outside world. The company is a subsidiary of… Read More About Liquid Telecom
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