Potraz gives Zanu PF benefactor Wicknell Chivayo license to operate Starlink internet as $575,000 payment seals the deal

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Zimbabwe’s telecommunications regulator, Potraz, has granted a license to IMC Communications, a local firm owned by Zanu PF benefactor Wicknell Chivayo, to provide internet services in the country through Starlink, a satellite unit of SpaceX owned by Elon Musk.

The approval of the license, though it is critised by some, especially anti-Zanu PF activists,  is set to revolutionize the country’s information technology space and significantly reduce the cost of digital services, which have remained high despite their critical importance in the digital era.

Well-placed sources revealed that IMC had paid a staggering US$575,000 for the permit, paving the way for the company to start the roll-out of wireless kits that allow internet connectivity from any part of the country at the lowest cost and at between 10-15 times the current speeds. IMC will also be liable to an annual license fee equivalent to 2 percent of gross turnover plus universal services fund USF amounting to 1,5 percent of total revenue.

The licensing of Starlink, a Low Earth Orbit (LEO) satellite operator providing coverage to over 80 countries, is expected to bring high-speed, low-latency internet connectivity to even the most remote corners of Zimbabwe, a country where many rural communities have struggled with limited or nonexistent fixed and mobile network access. This development, hailed as a game-changer by industry experts, is anticipated to significantly reduce the cost of digital services, which have remained prohibitively high for many Zimbabweans despite their vital role in the digital age. SpaceX designs, manufactures, and launches advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology, with the ultimate goal of enabling people to live on other planets.

“This is a momentous occasion for Zimbabwe,” stated Denny Marandure, Managing Director of IMC Communications, expressing his company’s gratitude to Potraz for granting the ISP license. “With the approval of our application, Zimbabwe is poised to witness a mammoth digital revolution. Competition is healthy, and IMC will undoubtedly increase competition and innovation in the Zimbabwe internet market, which should lead to lower prices and better quality for consumers.”

Marandure further emphasized IMC’s commitment to leveraging cutting-edge satellite technology to bridge the digital divide and ensure equal opportunities for all Zimbabweans. “This allows IMC to play its part in helping realize President Mnangagwa’s Vision 2030 of making reliable connectivity accessible to every person in Zimbabwe and embracing a digital future that leaves no one and no place behind,” he said. “Our service offering will prioritize customer satisfaction and ensure that we leave no one behind.”

Potraz Director General, Dr. Gift Machengete, confirmed the approval of IMC’s application, stating that the company had successfully met all the necessary requirements for an ISP license. “They made an application for what is called ISP or internet service provider, and we approved it,” Dr. Machengete said.

The licensing of Starlink in Zimbabwe has been met with widespread enthusiasm, with many seeing it as a crucial step towards unlocking the country’s potential for economic growth and development. The government’s commitment to promoting technology investment and creating a conducive environment for digital innovation is seen as a positive sign for Zimbabwe’s future.

However, the move has also sparked controversy, with some raising concerns about the potential impact on existing internet service providers and the role of IMC Communications, a company with close ties to the ruling Zanu PF party.

“While the potential benefits of Starlink are undeniable, it’s important to consider the implications for the existing internet market,” said an industry analyst who requested anonymity. “The entry of a new player with significant resources could disrupt the market dynamics and potentially impact the livelihoods of local businesses.”

The analyst also highlighted the need for transparency and accountability in the licensing process, particularly given the involvement of IMC Communications, a company that has been the subject of controversy in the past.

“It’s crucial that the government ensures a level playing field for all players in the internet market and that the licensing process is conducted with transparency and accountability,” the analyst said. “The government should also address concerns about the potential impact on existing internet service providers and ensure that the benefits of Starlink are shared equitably across the country.”

Despite these concerns, the licensing of Starlink marks a significant moment for Zimbabwe, offering a glimpse into a future where reliable and affordable internet access is no longer a luxury but a reality for all. The success of this initiative will depend on the government’s ability to manage the transition effectively and ensure that the benefits of Starlink are accessible to all Zimbabweans.

The Road to Connectivity

The path to this pivotal moment has been paved with both challenges and opportunities. In May, President Mnangagwa announced his approval of the licensing of Starlink, highlighting the government’s recognition of the transformative power of technology. “In this vein, I’m pleased to announce that I have approved the licensing of Starlink by Potraz to provide advanced internet and related digital processing services in Zimbabwe through its sole and exclusive local partner, IMC Communications (Pvt) Ltd,” he said in a post on his X account.

This announcement followed a period of uncertainty and controversy surrounding the use of Starlink in Zimbabwe. Prior to the licensing agreement, several individuals, including Neville Mutsvangwa, the son of Women’s Affairs Minister Monica Mutsvangwa and Zanu PF Spokesman Christopher Mutsvangwa, were arrested for allegedly using Starlink illegally. Mutsvangwa spent three weeks in custody facing charges before being granted bail after the Starlink deal was secured by Chivayo.

The licensing of Starlink is expected to bring a significant boost to Zimbabwe’s economy, with the potential to create new jobs, stimulate innovation, and improve access to education and healthcare. The government’s commitment to promoting technology investment is seen as a positive step towards achieving its Vision 2030 goals of economic growth and development.

The Future of Connectivity

The arrival of Starlink in Zimbabwe signifies a new era of connectivity, with the potential to transform the lives of millions of Zimbabweans. The government’s commitment to promoting technology investment and creating a conducive environment for digital innovation is a positive sign for the country’s future. However, the success of this initiative will depend on the government’s ability to manage the transition effectively and ensure that the benefits of Starlink are accessible to all Zimbabweans, without being monopolised by a single individual.

The future of connectivity in Zimbabwe is bright, but the journey ahead will require careful planning and collaboration between the government, industry players, and the people of Zimbabwe. As the country embraces the digital future, it is crucial to ensure that no one is left behind.


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