The National Social Security Authority (NSSA) in Zimbabwe has helped the government settle payment for the 60% stake disposed of by VimpelCom in Telecel Zimbabwe, and described it as a strategic investment.

The government is buying out VimpelCom for US$40-million through ICT parastatal Zarnet, and VimpelCom has confirmed that the transfer of its shares in Telecel Zimbabwe to the government would be completed once customary conditions had been met.

It has emerged that the NSSA government pensions scheme is providing financial support for the settlement of the purchase fee.

Public Service, Labour and Social Welfare Minister Elizabeth Mupfumira told parliament on Wednesday that the US$30-million advanced for the purchase "was not a loan".

"NSSA assisted Zarnet to pay $30 million for completion of Telecel Zimbabwe takeover, but this is not a loan." Zarnet had paid an initial $10 million for the acquisition of the shares.

Analysts believe the move signals the scheme's interest in a stake in Telecel Zimbabwe, with Zarnet expected to retain lower interest. The government already has a presence in the telecoms industry through its controlling stake in mobile firm NetOne.

Mupfumira said Telecel Zimbabwe was strategic for the pension scheme in light of its intention to undertake pension payments utilising mobile money platforms.

"NSSA will assume the obligation at Telecel because it's strategic for payment of pension through mobile money," she added.

Telecel offers the Telecash mobile money scheme which is competing against Econet Wireless' EcoCash. Mobile money, which has gained momentum in Zimbabwe, is being advanced with the inclusion of cross-border remittances.