Final Repose for Tanzanian Telco as State Authority Liquidates Assets

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final-repose-for-tanzanian-telco-as-state-authority-liquidates-assets — Final Repose for Tanzanian Telco as State Authority Liquidates Assets

After more than a decade of operations, Tanzanian telecommunications company ‘Sasatel’ has bowed out after the country’s Registration, Insolvency and Trusteeship Agency (RITA) announced the liquidation of its assets.

Sasatel, which was operated by Dovetel Limited, entered the Tanzanian market in 2008 to compete with other telcos such as Vodacom, Airtel, and Tigo. Its vision was crafted by its founder, Prof. Peter Chitamu, in 2005 and the company received a financial boost from PME African Infrastructure Opportunities PLC, which agreed to hold a 65% of the company. However, after years of a failed market expansion and the inability to compete favorably against stalwart rivals, Sasatel waded into loss territory and became insolvent. “The general public needs to understand that apart from registering births, deaths, marriages, divorces, and adoptions, RITA also oversees the insolvency of corporate bodies and even that [the insolvency] of individuals,” said the CEO of RITA, Frank Kanyusi.

The agency mentioned that it undertook the action in line with court authorization in order to protect the rights of shareholders, partners, creditors, and employees. The sale of assets will enable the agency to settle unpaid dues and debts incurred by the defunct telco.

“The work of insolvency in the country is guided by various laws depending on the type of business being conducted by the company being liquidated,” Kanyusi told the country’s media.

The agency is also tasked with registering boards of trustees, administering estates, and safeguarding wills and unclaimed properties. In the same announcement, a Chemicals company called ‘Hydrox’ was also liquidated.

The country has one of Africa’s highest mobile subscription numbers. According to a 2024 Statista report, the figure stands at more than 67 million.

Vodacom leads the market share with about 30% but Airtel and Tigo are in close pursuit with 28% and 26% respectively. Smaller and newer entries like Halotel and Smile communications sit below the 15% share – but are equally significant players.