Published: 17 September 2013

Tracy Mpofu, Econet Wireless non-executive director who chaired the AGM held on 17 September 2013 said Econet has not been paying a dividend due to a number of commitments which put pressure on cash flows including network expansion, servicing of debt and license renewal.

Econet is still servicing the $307 million syndicated loan facility.

Mpofu was responding to a question on why the company has not been paying dividends lately.
 
She noted that the directors understand the anxiety and concerns of the individual investors that look forward to a dividend.
 
"Going forward we will actually be reviewing and try to see how best we can accommodate the investor that is looking forward to a dividend. I think with the licence behind us and the repayments of the loan obligations well under way, a dividend should be quite close," Mpofu said without giving any specific time.
 
She said the business has had to pay $137 million this year for license renewal and believes it got a fair deal as the fee had first been pegged at $200 million before being negotiated downwards. In addition the renewal license is for a period of 20 years instead of 15.
 
The AGM approved audit fees of $1.144 million to Ernst & Young who were also reappointed as external auditors. Directors' fees of $388 583 were also ratified by the meeting while a trading update will be given at the impending analysts briefing as the company is on closed period.

- zfn

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