President Robert Mugabe's government has finally completed payment of about US$40 million for the 60% controlling stake in Telecel Zimbabwe previously owned by VimpelCom through the Amsterdam based telecom group's 51% owned Global Telecom Holdings.

Telecel Zimbabwe is among three mobile operators in Zimbabwe that also include Econet Wireless and NetOne. The finalisation of the acquisition of VimpelCom's stake in the Zimbabwe mobile company by the state gives the government greater control of the cellphone industry as it already controls NetOne.

"VimpelCom Ltd ... today announces that its 51.9% owned subsidiary, Global Telecom Holding has completed the previously announced sale of Telecel International Ltd to ZARNet (Private) Limited in Zimbabwe for a consideration of USD 40 million," the global telecom operator said on Wednesday.

Zarnet is an ICT company owned by the Zimbabwean state and will assume control of Telecel, which runs a mobile network, mobile money (with about 1.3 million registered users) and micro insurance services in Zimbabwe. Telecel has about 4.5 million registered mobile network subscribers in Zimbabwe.

The deal to transfer the Telecel Zimbabwe majority shares into Zarnet had stalled over the past few months owing to the government's inability to transfer money for the shares, said informed officials.

The remaining 40% in Telecel Zimbabwe is held by private business people in Zimbabwe, include James Makamba and Jane Mutasa through the Empowerment Corporation.

However, it has emerged in recent months that the government is keen to snap up the minority shareholders' interests in Telecel Zimbabwe although Zimbabwe is battling severe cash shortages.

In Africa, VimpelCom also has a presence in Algeria's Djezzy mobile network operator. The company has told ITWeb Africa that it will now focus its attention on the continent on Djezzy following the completion of disposal of its interests in the Zimbabwean operation.

"Following the completion of this sale, VimpelCom is active in Africa in Algeria, where we operate under the Djezzy brand," Neil Moorhouse, a spokesperson for VimpelCom said by email on Wednesday morning.

There are also indications that a significant portion of the US$40 million that Zarnet has paid for the acquisition of the 60% shares in Telecel Zimbabwe had been funded by the National Social Security Authority (NSSA).

Zimbabwe government officials previously explained that the social security authority will use Telecel's mobile money unit to disburse pensioners' funds.