Flamboyant Zimbabwean businessman Wicknell Chivayo, known for his extravagant lifestyle and generous donations, finds himself embroiled in controversy over an unpaid debt to an American consultant.
This comes amidst a backdrop of both lavish spending and recent success in securing a new internet service provider licence from the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz).
However, this generosity contrasts sharply with allegations of unpaid debts to business partners and service providers. The question arises: why the lavish displays of wealth while outstanding financial obligations remain unmet?
At the heart of the current dispute is a failed attempt to secure exclusive rights to partner with SpaceX’s Starlink satellite internet service in Zimbabwe. Chivayo engaged Frederick Griffin, a United States consultant, to assist in this venture. However, following the project’s collapse, Chivayo now refuses to pay Griffin the agreed-upon US$75,000 consultancy fee.
The NewsHawks’ investigation reveals that Chivayo’s Starlink ambitions faltered due to several factors. Sources suggest Starlink rejected Chivayo’s proposed business model, deeming it unorthodox and potentially shady. Furthermore, internal conflicts involving Chivayo, other applicants, President Emmerson Mnangagwa, his family, and Potraz executives further complicated the situation.
The investigation details a complex web of competing interests. While President Mnangagwa publicly supported Chivayo’s bid, one of his twin sons held a competing interest in the project. This led to First Lady Auxillia Mnangagwa opposing Chivayo’s application behind the scenes, with Potraz ultimately siding with the First Lady and blocking Chivayo’s deal. A compromise was eventually reached, resulting in the licensing of multiple companies, effectively thwarting Chivayo’s plans for exclusive rights.
This incident adds to Chivayo’s growing list of financial controversies. The NewsHawks investigation also highlights his involvement in the US$100 million Zimbabwe Electoral Commission (Zec) tender scandal, where he allegedly failed to pay his jailed business partners, Mike Chimombe and Moses Mpofu, their share of the proceeds. This, coupled with his March trip to the US to pursue the Starlink deal, has intensified scrutiny of his business practices.
Despite these controversies, Potraz has recently granted IMC Communications, a company owned by Chivayo, an internet service provider (ISP) licence. This licence allows IMC to pursue a partnership with Starlink as a reseller in Zimbabwe, potentially opening new avenues for the company.
IMC chairman, Wilson Manase, expressed optimism about the company’s role in Zimbabwe’s digital transformation. He stated: “As we roll out our services, we are fully committed to meeting and exceeding the service standards set by POTRAZ, ensuring that every Zimbabwean has access to reliable, affordable and innovative ICT services.”
This statement suggests a commitment to providing services despite the ongoing controversies surrounding Chivayo.
The granting of the licence to IMC places them among several ISPs vying for Starlink partnerships in Zimbabwe. The state-owned TelOne, already a provider of fibre-based broadband, is also among the approved partners. Starlink’s hardware is priced at US$350 with a US$50 monthly subscription, or a cheaper US$200 hardware cost and US$30 monthly subscription for its Starlink Mini. A significant prize for Zimbabwean firms is securing contracts to supply Starlink equipment to government departments.
Manase further elaborated on IMC’s ambitions, stating: “Our network infrastructure will enhance digital connectivity and support the rapid growth of e-commerce, e-government and digital entrepreneurship which are key drivers of growth in the modern economy.”
The contrasting narratives of Chivayo’s lavish spending and his business dealings, including the unpaid debt to Griffin and the recent licensing of his company, present a complex and intriguing picture of a businessman navigating both controversy and opportunity within Zimbabwe’s evolving telecommunications landscape.
