African Pay-TV operator Econet Media, which is owned by Zimbabwean billionaire Strive Masiyiwa’s Econet Group, has placed its struggling satellite broadcasting business under administration.
In an interview with South Africa’s BusinessDay, Joseph Hundah, Econet Media’s CEO, said Econet’s pay-TV company, which operates under the “Kwese” brand name, will soon begin talks with creditors to rescue the business. Econet Media reportedly racked up more than US$130 million in external liabilities and was unable to pay suppliers. The company has appointed accountants Ernst & Young to manage the process.
Kwese TV which launched in 2014 in more than 10 African countries has struggled to succeed in a market dominated by Africa’s largest pay-TV operator, MultiChoice, owners of DStv. In November 2018, the company abandoned its initial model and turned its concentration to free-to-air content distribution, a service that will continent to operate in Africa.
A spokesperson for Masiyiwa did not respond to a request for comment at the time of publishing this post.
Strive Masiyiwa, 58, currently has a net worth FORBES estimates at $2.8 billion.