Zimbabwean billionaire and telecom pioneer Strive Masiyiwa has vividly recounted how a rejected 1993 proposal to the state-owned Posts and Telecommunications Corporation (PTC) sparked a historic legal battle that ultimately dismantled Zimbabwe’s telecommunications monopoly.
Addressing a historic extraordinary general meeting held on Thursday where shareholders of Econet Wireless Zimbabwe voted to delist the telecommunications giant from the Zimbabwe Stock Exchange (ZSE), Masiyiwa described an era of near-total communications exclusion.
At the time, Zimbabwe had just 14,000 fixed telephone lines for its entire population, meaning only 0.07% of citizens had access to a phone, and fewer than 1% had ever heard one ring.
PTC held a dual role as both operator and regulator, effectively blocking private sector participation in telecommunications.
Masiyiwa approached PTC with a proposal to introduce mobile phone technology through a joint venture. Under his plan, PTC would retain a 51% controlling stake, while he would manage operations.
“I approached the Zimbabwe Telecom Company, PTC, which was a state monopoly, which was also the regulator, with a proposal that there was a new technology which could address the communications needs of the majority of our people,” he recalled.
The response was swift and dismissive. PTC stated that “there was no future in mobile telecommunications” and cited other national priorities.
Undeterred, Masiyiwa requested permission to proceed independently. He was informed that doing so would violate existing telecommunications laws.
“I said, so what kind of law is that, that empowers you to stop me from doing something which you don’t do?” he recounted.
The rejection marked the beginning of a protracted five-year court battle against the state monopoly.
Masiyiwa initially secured victory in the High Court, which ruled that mobile telecommunications fell outside PTC’s fixed-line monopoly, largely because cellular services relied on radio spectrum regulations.
The Supreme Court, however, overturned the ruling in 1994.
In response, Masiyiwa reframed the case as a constitutional matter, arguing that the lack of access to telephones restricted citizens’ freedom of expression and participation in public discourse.
In 1995, he won again at the Supreme Court level. But progress stalled when President Robert Mugabe imposed a moratorium on private cellular licences in 1996.
Further legal challenges followed until a final Supreme Court order in 1997 compelled the government to issue a licence.
Throughout the process, Masiyiwa said he faced political intimidation, pressure, and alleged demands for bribes from officials who favoured politically connected competitors.
In June 1998, Econet Wireless Zimbabwe officially launched, connecting its first subscriber and rapidly expanding operations.
The entry of Econet broke Zimbabwe’s telecom monopoly and transformed the sector, driving mobile penetration from near zero to widespread access within a few years.
The liberalisation also signalled a broader shift toward private sector participation in telecommunications across Africa.
Today, Econet has grown into part of the wider Econet Group, a billion-dollar enterprise operating across multiple markets.
Meanwhile, minority shareholders of Econet Wireless Zimbabwe Limited, including both institutional and retail investors, have overwhelmingly approved the company’s voluntary delisting from ZSE.
The Extraordinary General Meeting held in Harare saw all resolutions receive support exceeding 95 percent.
The special resolution to delist and transition to an Over-the-Counter (OTC) trading platform secured 95 percent approval from minority shareholders, with the majority shareholder voluntarily abstaining from this vote.
Shareholders also endorsed the Exit Offer, which passed with 96.6 percent support. Under the offer, investors will receive US$0.50 per share, consisting of US$0.17 in cash and US$0.33 in the form of one Econet InfraCo ordinary share for each Econet share tendered.
Two additional resolutions, amendments to the Articles of Association and granting directors authority to execute the transaction, each achieved 97.3 percent approval from attending shareholders.
