Econet closes Kwesé TV in Zimbabwe
Details
Rebecca Hawkes
| 06 August 2019

Econet Media’s Kwesé TV has shut down its operations in Zimbabwe, citing acute foreign currency shortages as the prime factor in the business’ demise.

Zimbabwe has switched from a multiple currency system, dominated by the US dollar and South African rand, to adopt a local currency suffering soaring inflation.

Kwesé, which is owned by Zimbabwean entrepreneur Strive Masiyiwa, has been operating across many African countries.

“We regret to end this service, which thousands of Zimbabweans had embraced and welcomed into their homes and offices as a viable alternative source of news, sport and entertainment,” said Douglas Mboweni, CEO, Econet Wireless Group.

“The third party content providers, on whose content we rely, require payment in foreign currency. With the prevailing economic conditions in Zimbabwe and the current business operating environment, characterised by an acute shortage of foreign currency, sustaining Kwesé and the Kwesé satellite service was no longer viable.”

Econet put its satellite TV business into administration in July 2019, hoping at the time to come up with a rescue plan with creditors. This followed the abandonment of its premium pan-African Kwesé TV service on 1 November, which it had hoped would be a rival to MultiChoice’s DStv service.

It is unclear now how the closure in Zimbabwe will affect Kwesé’s operations in South Africa, where it has been licensed by the Independent Communications Authority (ICASA) as a competitor to SABC and e.tv. Kwesé has been awaiting migration from analogue to digital TV before it starts broadcasting in South Africa.

Kwesé Free TV, which was awarded the licence in March, is 20% owned by Masiywa’s Econet group, while Royal Bafokeng Metix has a 45% stake and Mosong Equities has a 35% stake. The service is to offer five free channels, including a dedicated 24 hour sports channel in South Africa.