HARARE May 31 Zimbabwe will not renew the
licence of a unit of Egypt's Orascom Telecom until it
turns over a majority of its shares to local shareholders, state
media reported on Friday.
Orascom owns 60 percent of Zimbabwe's second-largest mobile
company, Telecel, which Transport, Communications and
Infrastructure Development Minister Nicholas Goche said was in
breach of its licence requirements, the state-owned Herald
The 15-year licence issued to Telecel, which has 2.6 million
subscribers, expires next month.
Goche said Telecel should meet its licence requirements
stipulating that Orascom hold 40 percent, with the majority to
be owned by black Zimbabweans, the Herald reported.
"If they don't do that I will not renew their licence. They
should meet the conditions they were asked to meet," the
newspaper quoted Goche as saying.
Telecel officials declined to comment.
Under a controversial law, Zimbabwe has been forcing foreign
firms to hand over majority stakes to local blacks.
Zimbabwe has set 20-year licence fees for the country's
three mobile telephony firms at $137.5 million.
The government on Thursday said it had renewed the licence
of Econet Wireless, which expires in July.
(Reporting by MacDonald Dzirutwe; editing by David Dolan)