Ten years ago, Econet had its best-ever year, with revenues of $753 million, a profit of $194 million, and an award for the “Best Telecom Services and Solutions in Africa.”
Thanks Tinashe great read it is, will formulate a view after the commercial break, that is, upon dissecting the second instalment. Great beeakdown you make on these issues.
Here is the thing T. I love your work. I'm just finding it now when I was trying to research on Mega and I was taken to your letters. I'm in love. However I believe using S&P, moodys and other credit rating agencies on African companies might not be reflective of these companies wholly. I believe to a large extent these credit rating agencies fail to not oy understand the African Market but even to be I dependent and not subject to a lot of biases when ranking African or other southern hemisphere companies... Other than that. Thank you. I will be reading a lot of your work. This you are assured.
Thanks Tinashe great read it is, will formulate a view after the commercial break, that is, upon dissecting the second instalment. Great beeakdown you make on these issues.
Econet's operating environment is challenging:
1. Potraz (huge license fees, levies, price controls, dictations e.g infrastructure sharing....
2. Macro-economics: currency fluctuations (high swinging), policy pronouncements (1:1) leading to huge losses for local businesses
3. Political/legal environment:
Then there're strategic blunders like the attempted move into TV and entertainment aka Kwese. I don't think the investment ever returned a dime!
Not sure also how other spin-offs like Maisha, insurance et al are contributing to the overall health of the company
Those are very valid points.
Actually had forgotten the Kwese investment. I think that was out of Econet Wireless Global?
However either way it's probably a bit of right pocket left pocket.
So it would have likely had some impact.
Here is the thing T. I love your work. I'm just finding it now when I was trying to research on Mega and I was taken to your letters. I'm in love. However I believe using S&P, moodys and other credit rating agencies on African companies might not be reflective of these companies wholly. I believe to a large extent these credit rating agencies fail to not oy understand the African Market but even to be I dependent and not subject to a lot of biases when ranking African or other southern hemisphere companies... Other than that. Thank you. I will be reading a lot of your work. This you are assured.
Very informative looking forward to the next article