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economic environment while a lot of it has brought to the fore certain information and behavioural tendencies that had not been previously anticipated.
We can only hope that when the dust settles the economy will emerge the victor.

Econet, the second largest company by market capitalisation, has also been in the news quite a lot. Flexing its muscles here and there but obviously not always getting the best results as it has found the contender quite powerful as well, though not necessarily as muscular.
The cases in question have been quite controversial, for want of a better word.

A few weeks ago Econet, which has always managed to entice the media, was in the papers with reports that it had terminated its agreement with Namibia’s TrustCo Life, after alleging
the latter had flouted certain contractual obligations.
A few days later TrustCo was reported to have begged Econet to allow the deal to continue but the latter would not hear any of that and was quoted as saying it would not rescind on its decision.

The fall out at that point followed complaints by Econet that TrustCo inundated its subscribers with unsolicited texts with classified information being released on social networks etc.
TrustCo was also said to have been demanding certain subscriber fees that Econet was not happy about, so the story goes.
However, a week or so later, TrustCo chief executive Mr Quinton van Rooyen flew in to “set the record straight” and said they were taking the local mobile network to court to have the contract reinstated.

The Namibian mobile operator said Econet had not walked out because of the former’s breach of contract but that the latter had been incensed by inquiries by TrustCo regarding its failure to pay royalty fees on time.
So many issues were raised at a press conference held in Harare last week, including allegations that Econet was also miffed by the fact that TrustCo refused to sell it part of its stake.
We are not too sure if this was just a brickbat thrown at Econet but the local operator has remained mum over allegations by TrustCo, giving the rumour market a bit of ammunition to use against it.

When everything is said and done, could this be about a case of sour grapes where Econet has decided to terminate the contract because it could not get a slice or two of the Trust Group or it does have genuine concerns that need redress?
We do not have answers but this is a case in which both parties need to inform the market of the exact goings on, particularly those that subscribe to Ecolife who have been told their figures under the policy are getting fatter.

Much of the information has been kept behind the scenes all along but enough has entered the public domain voluntarily or otherwise, to warrant explanation.
However, what got me thinking was that Econet seems to be fast becoming a corporate bully.
We have noted tendencies where, if it does not have its way, it tries to bulldoze by other means or just decides to quit.

Of course the dollar power will be at play but does it also mean that by virtue of it being cash-awash, the game has ceased to be fair for any would-be contender or opponent?
Another case in point is the Afre Corporation issue in which the firm, which owns a 20 percent stake, abruptly withdrew its board members after the Minister of Finance Tendai Biti frustrated its bid to increase stake in the firm as a strategy to “rescue” it from hard times.

Announcements were made that Econet had, at that point also decided to pull out of Afre and RTG, although this did not happen.
This attitude that its either my-way-or-no-deal, brings out tendencies of a bully who should always have his way all the time.

We noted that after sobering up somewhat, and noticing that not many were commiserating with it, Econet then said it was in fact not pulling out but in fact, offered to underwrite Afre’s rights offer.
What an about turn!

This naturally means that Econet will grab all the shares where shareholders may not follow their rights given the illiquid market.
Previous rights issues have received poor subscription rates resulting in the underwriters taking home a significant stake in the process.

This is likely to be the case with Econet, which will certainly increase its stake in Afre significantly.
When you bring the TrustCo issue to the fore, it is easy to notice this fact: Econet could not get a stake in the Namibian firm and this could have influenced its decision to pull out.

In RTG, Econet has a nine percent stake, a figure that could increase significantly via the Afre stake.
Of course, Econet is one of the firms that have shrugged off economic challenges over the past few years, posting huge profits where others have been dithering on the brink of collapse.

This is certainly well and good. The company seems to have a good work ethic and has viable systems in place.
We hope this is not getting to its head to think that it can, therefore, bulldoze and muscle its way into deals where other factors, beside size and bank account, should also come into play.

It needs to remain a responsible corporate citizen that promotes fair play, one that should also contribute meaningfully to socio-economic development.
Titbits

Got this one from a powerful businesswoman.
This is to encourage women who have to play a multiplicity of roles and yet try hard to do the best they can in all these, including running companies or influencing policy and yet remain timid somewhat.
Here it goes:
“Woman! She can deal with stress and carry heavy burdens. She smiles when she feels like screaming, and she sings when she feels like crying.
“She cries when she’s happy and laughs when she’s afraid . . . Her love is unconditional. There’s only one thing wrong with her. She forgets what she’s worth!”
In God I Trust!
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