Econet Wireless, Zimbabwe’s leading telecommunications company, has formalised its financial offer to the Zimbabwe Stock Exchange (ZSE).
HumanIPO reported last week the digitalisation of the ZSE had stagnated due to an offered loan by Econet to assist the digitalisation process. A ZSE source said the proposal should be rejected due to a conflict of interest.
Despite the concerns regarding a conflict of interest, Econet has formalised its loan offer, which will reportedly cover the entire cost of the digitalisation of the ZSE. The loan will also cover the costs of supporting modules, which are required to allow efficient utilisation.
The estimated cost of such a project is US$5 million. Econet believes it is important for ordinary people to access the ZSE and that it must become a “proper vehicle for mobilising capital for companies”.
Econet wants to reserve the rights to call the shots because its loan is conditional and it wants the ZSE to produce a transparent selection process that is acceptable to Econet for the selection of the vendor and system itself.
The ZSE said once Econet formalises its offer it would be able to comment on the matter, but has not done so as yet.