Resisting Political Corruption:
Econet Wireless Zimbabwe
8 - 9 March 2014 - The Observer
T
Abstract
his case study documents the story
of Zimbabwean entrepreneur Strive
Masiyiwa in his quest to obtain a
mobile telecommunications license.
First the Post and Telecommunications Corporation
of Zimbabwe (PTC) and then the Ministry of
Information, Post and Telecommunications of the
government of President Robert Mugabe place
obstacle after obstacle in his path, but Masiyiwa
challenges their decisions and actions in the
High Court and the Supreme Court. Throughout
this five year process (1993-1998), he remains
determined to obtain the license through ethical
means. A number of individuals and organizations
impressed by his values and come to his help and
this assistance, along with the independence of the
Judiciary, is instrumental in his firm being given
the license in July 1998. The case represents an indepth study of a successful example of resistance
to political corruption.
(Continued from last edition ..)
oon afterwards, in June 1996, President
Mugabe appointed a Cellular Technical
Committee under the amendment to
the Telecommunications Act to work
on the tender and license conditions. In August
1996, Econet’s team of lawyers went back to the
Supreme Court to present their arguments against
the amendment to the Telecommunications Act,
and in particular against the licensing process. The
argument they used was that the government was
acting in bad faith and was attempting to extend
the monopoly through bureaucracy.
In September 1996, the PTC launched its own
cellular phone service in Harare with 2,000 lines,
using a US$ 24 million loan from international
financial institutions.
Masiyiwa was by now in danger of running
out of money. Newsweek reported that he had
already invested US$5 million of his own funds.
Throughout Masiyiwa’s battles with the PTC and
the government, he received a steady stream of
visitors, such as Ministers and other governmental
officials, who would say to him:
“Come on Strive, be reasonable. Dear God, let’s
end this. Why are you fighting? Let’s go and see
the President and Cabinet Secretary, let’s talk to this
guy. I said: Listen, I’ll go tonight. I’ll go and see him.
And let’s restructure this, let’s accommodate A, B
and C into this. It was always there. But the more
I went, the more my convictions became clearer
and clearer that I was making a stand, that I had
to go this way, and the rewards would be greater if
you stood by what you believe in” (as recounted by
Strive Masiyiwa – Interview transcript).
On December 1