Zimbabwe’s largest telecommunications company, Econet Wireless has declared a $20 million dividend to be shared among shareholders for the first quarter ending 31 May 2018.
Shareholders will receive their dividend on the 7 August and foreign shareholders payments will be subject to exchange control approval and payment guidelines for foreign remittances.
“The company (Econet) has declared a dividend of 0.77 cents per share amounting to $20 million for the first quarter ended 31 May 2018,” said Charles Banda, company secretary for Econet on Thursday.
The company will pay the revised quarterly dividend on 7 August 2018, to shareholders of record as of 31 May 2018.
The dividend will be levied a 10% withholding tax “where applicable” added Banda.
Companies in Zimbabwe continue to face challenges in remitting dividends to foreign shareholders and Econet said: “payments to foreign shareholders will be subject to exchange control approval and payment guidelines”.
“Foreign shareholders should appoint or make their own arrangements with a local bank of their choice to receive a dividend on their behalf and to facilitate remittance to them,” read a statement issued by the company.
Local Econet shareholders can receive their dividend through the EcoCash mobile money service.
Major shareholders of Econet are Econet Wireless Global, Stanbic Nominees, and Econet Wireless Zimbabwe, with a shareholding of 30,02 percent, 17,23 percent and 13,19 percent respectively.