NetOne CEO Exit Sparks Debate on Corporate Governance in State-Owned Firm

By Shingirai Vambe

After years of steering Zimbabwe’s second-largest mobile network operator through an ambitious period of technological expansion, digital transformation and renewed commercial competitiveness, Raphael Mushanawani’s tenure as Chief Executive Officer of NetOne Cellular has come to an abrupt and controversial end.

For many employees, business partners and industry observers, the departure marks more than just a routine executive change. It signals yet another chapter in the long history of instability that has often characterised Zimbabwe’s strategic State-owned enterprises, where executive leadership frequently finds itself caught at the intersection of corporate governance, politics, institutional rivalries and public scrutiny.

The Post On Sunday is reliably informed that the termination of Mushanawani’s contract has left sections of the workforce disappointed, particularly among those who credit his administration with modernising the organisation, improving staff engagement and accelerating network expansion in an increasingly competitive telecommunications market.

The State-owned mobile operator has officially terminated Mushanawani’s contract following a resolution by the company’s Board of Directors, effectively bringing his five-year tenure to an end several months before it was due to expire in September.

The decision follows weeks of uncertainty after the veteran telecommunications executive was placed on forced leave while the board deliberated on his future.

Although NetOne has yet to publicly provide comprehensive reasons for the termination beyond internal governance processes, the decision comes against the backdrop of legal battles and governance disputes that have dominated the final stages of Mushanawani’s leadership.

His departure has once again reignited debate over the challenges facing executives appointed to lead Zimbabwe’s strategic State enterprises, where leadership transitions have frequently been accompanied by boardroom conflicts, ministerial interventions, corruption investigations and institutional power struggles.

Over the years, several senior executives across State-owned enterprises have either been suspended, dismissed or investigated before completing their contractual terms, raising persistent questions about governance stability and continuity within public institutions.

For many inside NetOne, Mushanawani’s exit represents the end of what they describe as one of the company’s most progressive operational periods.

Appointed Chief Executive Officer in 2021, Mushanawani inherited a company operating in one of Zimbabwe’s most fiercely contested sectors.

Facing stiff competition from market leader Econet Wireless and fellow operator Telecel, NetOne embarked on an aggressive strategy aimed at strengthening its market position through network expansion, digital innovation and improved customer service.

During his tenure, the company invested heavily in expanding 4G and emerging 5G infrastructure, extending mobile broadband coverage into previously underserved rural communities and strengthening its enterprise digital services portfolio.

The company also intensified investments in mobile financial services and sought to position itself as a significant player in Zimbabwe’s rapidly evolving digital economy.

Industry analysts note that during Mushanawani’s administration, NetOne significantly increased network availability, improved service quality in several regions and enhanced its visibility through strategic partnerships and infrastructure investments.

Employees who spoke to The Post On Sunday described his leadership style as highly accessible, saying he maintained direct engagement with staff while encouraging innovation and operational efficiency.

However, the achievements were increasingly overshadowed by legal and governance controversies.

In September 2025, Mushanawani was arrested by the Zimbabwe Anti-Corruption Commission (ZACC) on allegations involving procurement irregularities linked to the upgrading of NetOne’s SAGE 1000 Enterprise Resource Planning (ERP) system.

According to ZACC, the allegations centred on contracts worth more than US$1.2 million awarded to Lunartech Solutions for upgrading the company’s financial management platform.

Investigators alleged that Mushanawani initially approved a contract valued at approximately US$257,600 before subsequently authorising additional contract variations that increased the total value to more than US$1.2 million.

The anti-corruption body further alleged that he authorised another contract worth US$79,467 with Diztech for consultancy and training services which investigators argued had already been provided under an earlier US$3.5 million agreement awarded to Farevic Systems in 2022.

ZACC maintained that the transactions were undertaken without the necessary approvals from NetOne’s Executive Committee and Board of Directors.

Following his arrest, Mushanawani appeared before Harare magistrate Marewanazvo Gofa, where he was granted bail of US$500 under conditions requiring him to surrender his passport, report regularly to investigators and refrain from interfering with witnesses.

From the outset, however, Mushanawani consistently denied any wrongdoing.

His legal team argued that the criminal proceedings were not only unfounded but formed part of what they described as a calculated campaign orchestrated by individuals seeking to remove him from office.

His lawyers maintained that the SAGE 1000 upgrade had become operationally necessary after Sage South Africa announced it would discontinue technical support for the system after December 31, 2024.

They further argued that failure to migrate the platform would have exposed NetOne’s financial and operational systems to serious risks and that the decisions taken were made in the company’s best interests.

Court proceedings later weakened portions of the prosecution’s case, with some allegations failing to withstand judicial scrutiny.

Supporters of the outgoing chief executive argue that the legal challenges caused significant reputational damage despite the fact that aspects of the prosecution’s case did not ultimately succeed.

His departure therefore raises broader questions about executive accountability, institutional governance and whether prolonged investigations can irreparably affect leadership even where criminal convictions are not secured.

Founded in 1996 as a subsidiary of TelOne before becoming a fully-fledged mobile network operator, NetOne remains one of Zimbabwe’s most strategic telecommunications companies.

Beyond providing voice and data services, the operator plays a central role in advancing Government’s digital transformation agenda, extending connectivity to remote communities and supporting national financial inclusion initiatives.

In recent years, the company has become instrumental in expanding broadband infrastructure, rolling out next-generation mobile technologies and supporting Government efforts to bridge Zimbabwe’s digital divide.

The sudden departure of its chief executive therefore arrives at a critical moment for both the organisation and the broader telecommunications sector.

As the company prepares for its next phase of leadership, uncertainty remains over who will assume executive responsibility.

The NetOne Board has not yet announced an acting Chief Executive Officer nor outlined the recruitment process for appointing a substantive replacement.

For employees, investors, suppliers and customers alike, attention will now turn to whether the company can maintain the strategic momentum built over the past five years while navigating the governance challenges that have once again placed one of Zimbabwe’s key State enterprises under the national spotlight.

The leadership transition also reopens a broader national conversation about the governance of public enterprises, succession planning, board accountability and the need to insulate strategic institutions from recurring cycles of instability that have often undermined long-term institutional growth.