Zimbabwe: Netone Mulls Venturing Into Agriculture

Source from:  The Herald (Harare) January 24, 2007 01/26/2007

MOBILE telecommunications giant NetOne is planning to venture into agriculture as a means of generating foreign currency and facilitating the growth of the farming sector. The prevailing scarcity of foreign currency has resulted in the company failing to consistently maintain or expand its network while at the same time exacerbating its debt position with other service providers. In an interview with the Herald Business, NetOne managing director Mr Reward Kangai indicated that the funds generated from the venture would be used for the setting-up of base stations. "The foreign currency is expected to kick-start critical projects aimed at widening the customer base. One such project is targeted at providing 1,2 million lines by year end. We cannot just wait for the Reserve Bank of Zimbabwe to give us all the money. We have to make our own money, which has made us plan to venture into agriculture," he said NetOne intends to pour an unspecified amount of money into cotton, tobacco and horticultural projects as it steps up efforts to beef up its foreign currency coffers. Mr Kangai could not be drawn into revealing the amount set aside for agriculture, saying there were some modalities being finalised by the relevant authorities. The company expects full return of the foreign currency spent on the venture and will use the funds to rehabilitate the company's network coverage. Under its broad and strategic network expansion programme, NetOne would also enhance its network systems for effective service discharge to its contract subscribers. NetOne is currently undertaking a US$22 million network expansion programme to be rolled out within the next few months. Foreign currency shortages, which cut across all sectors of the economy, have stalled the company's plans to expand its network to service potential customers on the waiting list. "Scarcity of foreign currency has resulted in our company being unable to maintain or expand our network to desirable levels, while at the same time affecting our debt position with other service providers," he said. Perennial shortages of the hard currency have affected productivity as companies fail to procure critical inputs resulting in low capacity utilisation. Enditem