Econet puts Kwese pay-TV arm into administration
Details
Rebecca Hawkes
| 04 July 2019

African pay-TV operator Econet Media is to begin talks with creditors to rescue its Kwesé satellite TV business after it was put into administration, according to Business Day.

CEO Joseph Hundah confirmed that the company has appointed Ernst & Young to manage the process for the ill-fated pay-TV arm, which was unable to sustain competition from its long established rival DStv.

Under mounting pressure, Kwesé TV turned its concentration to free-to-air content distribution in November 2018. This service will continue to operate in Africa.

Owned by Zimbabwean entrepreneur Strive Masiyiwa, Econet Media is continuing to operate its other businesses without disruption, Hundah told the publication.

In March, a consortium comprising Econet Media (20%), Royal Bafokeng (45%) and Mosong Capital (35%), was awarded a licence by the Independent Communications Authority of South Africa to compete with free-to-air terrestrial broadcasters SABC and e.tv. When it launches, the **Kwesé Free TV network ** will be the first to enter the South African market for more than two decades.

Hundah conceded the group’s inability to take money out of Zimbabwe has “had an impact” on the business, after the government stopped recognising the US dollar, SA rand and other foreign currencies as legal tender in June in an attempt to tackle surging inflation.