The single deal that would make Wicknell Chivayo a billionaire and how he would dish out US$20 million every month

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Harare – A NewsHawks investigation has unearthed a remarkable attempt by controversial Zimbabwean businessman Wicknell Chivayo to secure exclusive rights to provide Starlink satellite internet services in Zimbabwe, leveraging his perceived close ties to President Emmerson Mnangagwa, The News Hawks has reported.

Chivayo’s audacious plan, aiming to establish himself as the sole authorised reseller of Starlink hardware and services in Zimbabwe, and subsequently replicate this model in Uganda and Tanzania, ultimately met with regulatory resistance.

This investigation, drawing upon a wealth of fresh documents, messages, voice notes, and interviews, exposes the intricate details of Chivayo’s strategy. His plan involved the creation of a communications company, IMC Communications (Pvt) Ltd, the recruitment of a seasoned technology expert, and the crucial securing of high-level political support. The core strategy relied on gaining the President’s backing, securing the support of the Information Communication Technology (ICT) minister, Tatenda Mavetera, and ultimately overriding the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) to obtain a special licence granting exclusive Starlink rights within Zimbabwe.

Chivayo’s pursuit began in earnest back in March, with a series of trips between the United States, Zimbabwe, Uganda, and Tanzania. A well-placed source provided crucial insights into a meeting in Miami, Florida, on 21 March. This source revealed that Chivayo, having spent several days in New York (17-20 March), met with influencers, including associates of music star Rick Ross, at the Ritz-Carlton, South Beach. During this meeting, Chivayo inquired about securing exclusive Starlink rights in Zimbabwe. While the meeting didn’t directly facilitate this, it led to the suggestion that he engage a consultant.

Among those suggested was Frederick Griffin, chief finance officer and president of GIS Financial Group, who seemed to fit Chivayo’s requirements. Chivayo’s chauffeur, Hugh Cunningham, who knew Griffin, facilitated contact. The following day, 22 March 2024, Griffin spoke with Chivayo, and they agreed to collaborate on a professionally revised application for Starlink.

Subsequently, on 20 May, Chivayo and Griffin formalised their agreement. Chivayo, signing on behalf of IMC Communications (Pvt) Ltd, based on the 18th Floor of Karigamombe Centre in Harare, committed to securing the necessary licenses by engaging with President Mnangagwa, Minister Mavetera, Potraz officials, and other key stakeholders. Griffin, signing for GIS Financial Group, located in Orange Park, Florida, agreed to provide financial advisory and business consulting services. The agreement, along with a comprehensive business plan and final proposal, explicitly aimed to secure an “exclusive partnership with Starlink Services LLC, a wholly owned subsidiary of SpaceX.” GIS’s fees totalled US$75,000: US$10,000 upfront, US$50,000 as the main fee, and US$15,000 as a success fee.

Information gathered from various sources indicates that Chivayo significantly inflated IMC’s capabilities in his proposal to Starlink. He claimed IMC was a well-established technology company generating approximately US$5 million monthly, with a net profit of US$1.5 million. His proposed revenue-sharing model with Starlink was 40% for IMC and 60% for Starlink.

IMC’s contribution would be securing the necessary licences and political protection, while Starlink would provide infrastructure, skills, and supplies. Chivayo’s proposal also included a staggering promise to pay US$20 million monthly to US influencers to secure the deal, without specifying the source of these funds. He alluded to larger Starlink plans across multiple countries during negotiations with his American contacts.

Chivayo’s pursuit of the Starlink deal intensified. On 5 May, he was in the US for his younger sister, Glendour Kudzayi Moyo’s graduation ceremony at Rosen College of Hospitality Management in Orlando, Florida (having arrived on 4 May). He used this opportunity to further engage with his consultants and contacts regarding the Starlink deal. On 19 May, he met with President Mnangagwa at his Precabe Farm in Kwekwe, securing the President’s agreement to license Starlink, with IMC as the exclusive service provider. With Mnangagwa and Mavetera on board, and anticipating the ability to override Potraz, Chivayo felt poised to approach Musk directly.

On 24 May, a meeting was organised between Chivayo, Minister Mavetera, and Elon Musk. A well-placed source confirmed that this meeting, scheduled for 8 pm Zimbabwean time, took place five days after Chivayo secured Mnangagwa’s support. Chivayo deliberately concealed his relationships with Mnangagwa and Mavetera from Musk and his team, to avoid raising red flags about a potentially problematic patronage-based arrangement. His consultants were instructed to feign unawareness of his connections. Chivayo’s subsequent claim that the meeting went “very well” accelerated the process.

The following day, 25 May (Africa Day), President Mnangagwa issued a unilateral statement announcing that he had licensed Starlink in Zimbabwe, with IMC securing exclusive service provision rights. The President’s statement on X (formerly Twitter) read: “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. Starlink is a Low Earth Orbit (LEO) satellite operator wholly owned by global conglomerate SpaceX, led by prominent multi-billionaire Elon Musk. The entry by Starlink in the digital telecommunications space in Zimbabwe is expected to result in the deployment of high-speed, low-cost LEO internet infrastructure throughout Zimbabwe and particularly in the rural areas. This will be in fulfillment of my administration’s undertaking to leave no one and no place behind. The investment confidence expressed by Starlink in Zimbabwe’s telecommunications infrastructure also dovetails with the 2nd Republic’s mantra ‘Zimbabwe is open for business’. I encourage more investment by foreign conglomerates in Zimbabwe as we are an investment destination of choice. I take this opportunity, on behalf of the Government of Zimbabwe, to congratulate IMC Communications (Pvt) Ltd and Starlink on this commendable milestone aimed at revolutionising the digital and communications technology landscape in Zimbabwe. Investments of this magnitude and strategic importance represent the cornerstone for achieving the 2nd Republic’s objective of having a fully digitalised upper-middle income economy by 2030.”

This announcement effectively positioned Chivayo’s company as the sole gateway for Zimbabweans to access Starlink hardware and services. While enforcing such a monopoly in a free market would be challenging, government departments, state institutions, and the private sector would likely have been pressured to utilise Chivayo’s services.

With this apparent breakthrough, Chivayo promptly travelled to Uganda and Tanzania to replicate his strategy. His business model, heavily reliant on influence peddling, name-dropping, and leveraging personal connections, is evident in his interactions with President Museveni in Uganda and President Samia Suluhu Hassan in Tanzania. He documented these meetings on social media, highlighting the potential for multi-million dollar investments in the digital technology sector in both countries.

Following his meetings in Uganda and Tanzania, Chivayo began advertising Starlink services in Zimbabwe through social media on 11 June, promising a revolution in internet service provision. The following day, IMC, presenting itself as the “exclusive distributor of Starlink services in Zimbabwe,” appointed Denny Marandure, a prominent figure in the Zimbabwean ICT industry and former ZOL Zimbabwe executive, as its managing director. IMC’s statement highlighted Marandure’s extensive experience and expertise. Marandure later stated that IMC was prepared to launch Starlink services ahead of the SADC summit on 17 August, pending the finalisation of reseller agreements.

However, Potraz’s intervention disrupted Chivayo’s plans. In July, Potraz publicly stated that no company had been granted exclusive rights to offer Starlink services in Zimbabwe, citing the absence of such provisions in the country’s telecommunications laws. Potraz Director-General Gift Machengete stated: “In our license categories, we have no licenses for exclusivity. Our licenses are not technology-specific; in this case, the service that we are licensing is internet service provision. This means that anyone who has our license, it is an ISP, that person can go to Starlink, that person can go to Liquid, that person can use any technology.” He confirmed that several licenses had been granted to various operators, including DFA Zimbabwe, ZOL, Utande, Powertel, Liquid Intelligent, and TelOne. Machengete later confirmed that IMC had received an Internet Service Provider license.

Marandure, seemingly at odds with Chivayo’s pursuit of exclusivity, expressed confidence in IMC’s contribution to increased competition and innovation in the Zimbabwean internet market.

Despite the setbacks, Starlink launched in Zimbabwe on 6 September, joining other African countries with Starlink services. Elon Musk’s recent meeting with South African President Cyril Ramaphosa further suggests Starlink’s expansion across the continent. Starlink is currently offering residential packages with a one-off hardware cost of $200 (mini unit) or $350 (standard unit) and a monthly fee of $30 or $50, both offering unlimited internet access with varying speeds. Currently, only three companies—Zodsat, IMC, and Aura—have been approved by Potraz to offer Starlink services in Zimbabwe.

Minister Mavetera, when contacted for comment, stated that Potraz’s announcements regarding licensed operators represented the official position. She emphasised the ministry’s role in policy formulation and oversight and explained her attendance at various telecommunications events as a demonstration of support for all industry players.

Chivayo remained unavailable for comment. The episode serves as a compelling case study of the intricate interplay of influence, political connections, and regulatory oversight in Zimbabwe’s business environment.


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