Econet Wireless has closed down Kwese TV, its pay-TV company across Africa after the company complained about the downturn in Zimbabwe’s economy.
Econet’s Group Chief Executive Officer Douglas Mboweni said: “We regret to announce the discontinuation of Kwese TV Satellite Service with effect from Aug. 5.”
Kwese TV which was operated by Econet Media Ltd. was looking to stand as a major competition against Naspers’ Multichoice subsidiary called DSTV.
As an explanation, Mboweni said: “The third party content providers on whose content we rely, require payment in foreign currency,”
“With the prevailing economic conditions in Zimbabwe, and the current business operating environment –characterized by an acute shortage of foreign currency –sustaining Kwese and Kwese Satellite Service was no longer viable,” he said.
Zimbabwe has been in economic doldrums in over a decade. However, the country’s precarious situation went out of hand after Zimbabwe’s finance minister blacklisted the use of U.S. dollar, South African rand and other foreign currencies in the country. Another shock to investors was the suspension of inflation data for six months.
Econet Media Ltd. filed for bankruptcy in June after the company appointed Ernst & Young as its receivers to pay off creditors.