Masawara to invest in Zimbabwe Internet

LONDON – Zimbabwe-focused investment company Masawara is taking a 50% stake in an internet service provider.

AIM-quoted Masawara is investing $5m in Telerix Communications and it also intends to spend a further $2m on 8% preference shares, which mature at the end of November 2012. Telerix has a licence to build an internet and VoIP network in Zimbabwe. It intends to wholesale bandwidth to other providers as well as developing mobile broadband services.

Telerix lost $904,000 in the six months to June 2010 and by then it had already invested $11.3m in developing its infrastructure.

Zimbabwe has the highest internet penetration in southern Africa but local connections are poor. Telerix has the opportunity to offer wider bandwidth and a more reliable service.